The continuing ‘health and wealth’ of your business is our goal.
In the course of working with business clients there are some issues that keep recurring. These are:
- Succession – when is it time to exit your business and who will buy it?
- Key people – who is the key person or people in your business and how would you cope if they departed unexpectedly tomorrow?
- Business wills – do you have a buy/sell agreement in place for your business?
From our experience, the most successful businesses are those that plan for future contingencies. WealthPartners Director Andrew Heaven, has been a judge of the Telstra Australian Small Business Awards for several years and says “the most outstanding small businesses in Australia have addressed these three issues as a vital part of their organisation’s ongoing planning process.”
Bill Hovey is an experienced succession planning practitioner. He specialises in advising individuals and companies about how to create and manage exit strategies. “It is ridiculous,” he says, “for people to spend a lifetime building their business then one day simply turn the key in its door and go home never to return. Of course obtaining a fair price and ensuring the continuing success of one’s business really isn’t a DIY task.”
Business Succession is becoming an increasingly important issue for baby boomer entrepreneurs. Paradoxically it is also an issue which is either ignored, deferred, or both. Hovey explains why? “One reason is that entrepreneurial owners are emotionally engaged with their businesses. They find it difficult to acknowledge their tenure coming to an end. Even worse, they cannot imagine their future life without their business.”
He acknowledges that while interest in business succession has heightened partly because the boomers are ageing, one of the great impediments to successful business succession is the failure of owners, especially those in small and medium enterprises, to do anything about it.
Business Succession means different things to different audiences. Firstly, it implies an orderly hand-over by a CEO to a successor. Secondly, it suggests an owner’s exit through total or partial divestment of ownership. Thirdly, it recognises the passing of the management baton.
Good succession planning comprises the transfer of both management and control and is accompanied by a desire of the existing owners to exit within a time-certain period. Succession will be triggered by a range of possible alternatives including age, health, fatigue, financial performance, competitiveness, or a change in family circumstances. It is an issue that needs to be addressed by every business and requires professional guidance and advice. Over time circumstances change so your succession planning programs needs to be reviewed regularly.
We know that many business owners view their business as their retirement nest egg. If that is part of your plan, how well is that nest egg really protected? And, how easy is it for you to access that financial nest egg? At WealthPartners we work with our business clients as your financial partner. We are here to support and grow your wealth and prosperity, working collaboratively with your accountant and solicitor, as part of your ‘Business Board of Advice’.
Contact WealthPartners for more information on how they can help you grow and protect your business.
P: (02) 9955 1988
F: (02) 9955 1989