Australia’s population, like that of most developed countries, is ageing as a result of sustained low fertility and increasing life expectancy. The median age of Australians in the year 2008 – 2009 has increased to 36.9 years. What does this mean for Australian business?
– 40% of business owners intend to leave the business in the next 5 years
– 33% of all business owners are over 50 years of age. (Now over 40%)
– 66% of owners plan to use their business as their primary source of retirement income
Are you in the above categories?
For those of you who are planning on selling your business in order to retire, it is of paramount importance that the sale price will allow you to retire comfortably and not compromise your quality of life.
Research shows 70 per cent of businesses think succession and exit strategy planning is important but only 12 per cent have a documented plan. Unsurprisingly, the main motivating factor for the creation of a plan is age.
What every business owner planning to sell or retire in the next 5 years should be doing?
When considering the sale of your business, you must consider the two stages.
Stage One: Understanding when to sell – “the getting ready” process
You need to explore issues such as whether you have the right information together for the potential buyer. Does your business look like a low risk investment? Do you understand the key criteria in selling your business so you can structure your business in the best light? Is it likely that if you waited you could improve the appeal for your business and therefore sell it for more money?
Stage Two: Understanding how to sell
This is the price, strategy and processes that you will use to advertise and sell your business. Don’t take shortcuts because there is too much at stake. Complete the checklists in Stage One, so that Stage Two is the execution of a well thought out plan that result in the maximum sale price.
There are many different avenues business owners can use to find out more about exit strategy and how to prepare your business for sale. One is to seek out professional help by using either a business advisor specialising in Exit or a business broker. If you feel like you can do this on your own there are some great books in the market as well as you can attend seminars and presentations run by experts in the area.
Our aim is to educate business owners on how they can maximise their business worth.
What I’d like to do is send you a really helpful quick quiz that will show you how valuable your business is on a score out of 100.
We will then assess your business and send an in-depth colour report that will show you your value gaps and what to focus on to make you a more valuable business…and how to sell for a lot more money when the time comes.
THIS ASSESSMENT IS FREE it is based on research from mergers and acquisitions around the world on what drives value.