Given the multitude of factors influencing a successful transfer of ownership, the establishment of a robust business succession plan is absolutely essential.
Neglecting to establish a well-structured business plan or implementing an inadequately executed exit strategy can have detrimental consequences, potentially devaluing the business and leading to a rushed sale at a disadvantageous price. Such a process can inflict hardships on family members, disrupt relationships with business partners, instil uncertainty among employees, and negatively affect both suppliers and the local community where the business operates.
There are four key elements of a successful plan:
Identifying the next generation of owners, Establishing a strong management team, Undertaking a regular valuation exercise and Knowing when to plan an exit strategy.