Planning your future
Expert help to plan for the major milestones in your family’s life
Q) I am handing my business over to a successor, when should I start thinking about succession planning?
A) As early as possible. You want to ensure there is a well thought-out plan for a smooth transition to your successor whilst obtaining the best outcome for you, be it maximum sale value, a regular “pension” income or simply ensuring the family business continues to flourish down the generations. In the majority of cases, a successor will be a family member, so it’s important to confirm with them in advance that it’s what they want too. If they don’t, you will need time to explore your other options. Q) I am thinking about selling my business, when is a good time to sell?
A) In an ideal world, when your business is on the up with further growth available. That stage in any company’s life is hard to pinpoint. Assuming no external factors are forcing a sale, the decision to sell often has personal lifestyle factors behind it. You may want to spend more time with your family, or you’re ready for retirement and want to release some liquid equity; maybe ill health has caused you to think about selling. Q) How do I find out how much my business is worth? A) Simply put, a business is worth as much as somebody is prepared to pay for it and what a vendor is willing to accept. A business that is subject to a number of bids is likely to achieve a higher price, as the price can be increased due to ‘competitive tension’. There is a lot to consider when valuing an independently owned company that requires specialist advice.
Kate Baines, Manager, Larking Gowen Corporate Transactions