Seeking to exit a business just a few weeks or months after making the decision to do so, is not the best way to optimise value in a business sale.
As I explain in this video, it’s much wiser to incorporate exit and succession plans into your ongoing business planning and prepare for a sale over a period of several years.
It's pleasing to see our clients are increasingly adopting this approach, giving themselves plenty of time to overcome some of the challenges often faced when looking to optimise value on exit.
Two of the key challenges, as I outline in this week's video, are ensuring and proving 'sustainability of earnings' beyond the sale, and mitigating 'key person risks' through succession planning.
Helpful resources
We have created a number of free resources to help our clients and readers with succession planning and preparing a business for sale:
- ebook – How to prepare your business for sale
- ebook – Succession planning: How to future proof your business
- ebook – Strategic value in a business sale
- ebook – Selling a business: What works, what doesn't and how to avoid the common pitfalls
- template – Business Succession Scorecard
- template – Strategic Value Checklist
If you would like assistance to develop an exit or succession plan for your business, contact the team at JPAbusiness on 02 6360 0360 or 02 9893 1803 for a confidential, obligation-free discussion.
James Price has over 30 years' experience in providing strategic, commercial and financial advice to Australian and international business clients. James' blogs provide business advice for aspiring and current small to mid-sized business owners, operators and managers.