Succession Planning
Do you realise a well-prepared Succession Plan can help your business pay for you to retire or exit?
Do you know who will take over you role when you want to leave?
Don't take leave the succession of your business to chance and prepare to get the value you want when you leave.
What is Effective Succession Planning
Succession planning is a process for documenting a detailed strategy on how you as the owner of the business can leave or retire whilst your legacy continues.
The key features of effective succession planing include:
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The owner achieving a strategic price as part of their exit strategy.
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A focus on systems and processes that support the exit strategies of key owners.
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A new organisational structure that addresses the gaps left when key owners leave.
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Recruitment of new staff and management to ensure the growth of the business is maintained.
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A more detailed deal structure that supports key owners undergoing a staged or quick exit from the business.
Often succession planing implementation will take longer than simply selling your business, as new systems and processes need to be implemented, a new organisational structure put in place and possible recruitment and training of new people.
Succession planing will often, but not always, facilitate an internal transfer of ownership to other family members or employees as in a management buy-out (MBO) or sometimes a management buy-in (MBI).
The key focus is that the business is in a strong position to continue to operate and grow under new ownership, and there is a clear process for the owner to be paid a strategic price for the business.
Benefits of Succession Planning
Effective succession planning will give the key owners the best price for their investment whilst ensuring their legacy continues.
The benefits of effective succession planning include:
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Securing the ongoing growth and profitability of the business under new ownership.
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An increased likelihood of getting a strategic business valuation for their ownership.
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Respecting the legacy and ensuring the right people continue to manage and grow the business.
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Reducing the risk of the business declining in performance after the key owners leave.
Succession planning respects the legacy you have created and protects the value you have built in the business, ensuring that value is transferred to you in the best way.
Our Succession Planning Process
Whilst it is important that a business can function without the key owners in any exit process, the focus for succession planning is to make sure the right people and processes are in place to ensure ongoing growth and success.
For this reason the development of effective succession planning will answer such questions as:
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What processes and systems are required to reduce or eliminate the reliance on key staff?
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What organisational structure is most suited once key owners leave the business?
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What skills and experience are required to manage and grow the business in the future?
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How will the key owners exit and how will they be paid?
Once the systems and people are prepared for the exit of the owner, an attractive deal must be structured to attract new owners and pay the past owners the strategic value they want to exit.
The Exit Value Advisers Succession Planning Process is a staged approach at facilitating the process of protecting your legacy and getting you the best price for your ownership.
We make sure you have a clearly documented plan, effective systems and processes that allow the key owners to step back and the right people in place to protect and grow your legacy.
We can provide a fixed price quote on a staged-approach that meets your budget, time constraints and most importantly your expectations of realising the value of your business.