Many businesses, particularly small to mid-sized businesses, rely heavily on one or two key individuals for the business to operate.
These individuals are often the business owners and they may be reluctant to delegate control and decision making for a variety of reasons.
Whatever those reasons, the result is centralised decision making, knowledge and experience, which are not easily transferable in a business sale.
Ultimately, of course, that impacts business value – and not in a good way!
Topics: Business Planning, Valuations, Template, Video, Succession planning, Business valuation, Business advisor, JPAbusiness, Parramatta, succession, business succession, scorecard, business value drivers
We recently helped facilitate the sale of a client’s business for twice its assessed value – a value we had independently appraised!
The valuation was based on the business’ sales performance, its recent past earnings, our assessment of the repeatability of those earnings given internal and external business health factors, and the assignment of a multiple of earnings.
So, how did the business owner achieve a sale price that so far outstripped our initial valuation?
The short answer is that he had an open mind and was willing to work with us to explore all options for exit.
Topics: Selling your business, Case study, Exiting your business, strategic value, business advice, Business valuation, Business selling, succession, business sale, exit strategy
It’s never too early to start thinking about your succession strategy and developing the skills of your team and business capability.
Succession planning is about creating a sustainable business that will continue to operate successfully into the future, whether you stay in the business or not.
The following infographic contains 6 succession strategies you can start employing today. Adopting these strategies will help future proof your business for when and if you decide to take up an exit opportunity, or relinquish operational involvement in your business.
Topics: Business Planning, infographic, Succession planning, staff management, business advice, managing employees, succession, business succession, managing staff
