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COLUMN / SUCCESSION PLANNING
It’s said that the best time to think about getting out of the business is the day you start. Here’s how to maximise the sale value of your business EXIT THIS WAY
solid succession plan in place if they want to realise the maximum value of their business, says Craig West, principal of Succession Plus. “Buyers are looking for businesses that are well- prepared, well-documented and properly structured.” TIMING When should you start planning your succession? “Yesterday!” Zulman says. “It’s a multi-year strategy.” West’s advice is five years. “If you want to sell a business, you can probably do it in as little as six months, but to get the maximum price you want to be planning and preparing for at least three years – ideally five.” The best approach, he adds, is to begin your business with the end in mind. This allows you to implement a strategy that reflects your end goal. For instance, if your goal is to sell your business to an employee, then your hiring process will reflect that desire. The worst thing you can do is to leave it until it’s too late. “Don’t underestimate howmuch work is involved and howmuch time it takes – not if you want to maximise value,” says West. “If you want to do it quickly, you’ll get what you get. It’s the same as going to a real estate agent today to sell your house this weekend. They’ll do it, but you won’t get a very good price.”
T he silver tsunami is officially underway. The first wave of the Baby Boomer generation turned 65 in 2011, and many more will soon approach retirement. While all industries will experience a drop in numbers, the situation could be particularly acute in the mortgage industry, as many turned to broking as a second career. “[Many brokers] worked in banks or real estate, and then went into mortgage broking ,” says Jeff Zulman, managing director of Book Buyers Brokerage Services Australasia. “But now it’s getting to a maturation point. If a person left the bank in their 40s when mortgage broking took off, they’re now in their 60s.” While the number of brokerages for sale is on the increase, the number of buyers is not. Therefore, buyers can afford to be picky. As a result, sellers need to have a
Jeff Zulman
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