You’ve built a successful small business and it’s going well – but over the horizon comes retirement, a new venture, or a family concern. So how do you plan for your exit?
“A good percentage of practitioners will die at their desk. And it’s frustrating for younger team members. I think the biggest block to succession in the accounting industry is that the boomer phenomenon is coming. The suburban guys that probably haven’t put any time into succession will see their client list drop off – to a point where they can’t pay the rent anymore.” – Kev Ryan, director, buysellandmerge.com and Kev Ryan Pty Ltd.
In this week’s episode of Xero In, we speak to business broker Kev Ryan about the many options available to small business owners when planning their exit, as well as what new business owners should look for when deciding to invest in an existing business.
If you’re thinking about selling up, getting out, moving in or investing, this is a great episode to listen to. Kev’s two decades of experience as a business broker mean he’s well-placed to give advice on succession planning. And it’s something you’ll need to consider well in advance.
“In any business where the proprietor is really the face, the intellectual property and the arms and legs, deciding the value and an exit strategy process for them becomes very difficult unless they can replace themselves,” says Kev.
Succession planning is more important now than ever. According to a PWC report, there’s 1.4 million business owners that employ 7.9 million people in the Australian economy that are looking at exiting in the next five to 10 years.
“A good percentage of those are boomers, so the timing for their retirement is in the next five years. Where are all the buyers coming from – for all these businesses that are going to come onto the market?” Kev asks.
Small business resources:
- Small Business Guide: What business reporting can tell you – Xero.com
- Succession Planning – business.gov.au
- Learning from leadership’s missing manual – Ted.com
What would you like to hear?
Got a topic you’d like to hear discussed? Or a business expert you admire and would like to hear from? Let us know in the comments below!