There is no success without a succession.
New Zealand has an ageing population and the trend that unites small to medium business owners – from dairy farmers to lawyers, restaurant owners to pharmacists – is the increasing average age of business owners. A 2007 survey of small businesses commissioned by the Ministry of Economic Development showed that 64 percent of owners intended to exit their business within ten years.
Succession is something most of us will only do once and it is important we get it right.
Unfortunately an exit strategy is not usually high on the list of priorities. Deloitte and Moyles Consulting ['Succession, ownership and pay,' September 2011] found that only one third of survey respondents have a formal succession plan in place.
Planning for succession is important to ensure the future success of the business following the transition of ownership, to maintain effective relationships between existing and new owners and to ensure the business can deliver what the exiting owners need to achieve their goals following their exit from the business.
Peer Review can help you identify and overcome the barriers to a successful shift in ownership. In our experience there are three main transitions as you separate yourself from your business:
• Emotional Transition • Financial Transition • Ownership Transition.
Peer Review has significant experience in helping business owners transition through these three key stages, ensuring the transaction is successful for both exiting owners and their successors.
Succession is like saving – you can never start too early. Have you given your business the best chance of surviving the above transitions? If not, give us a call and book a consultation to get started.