To date, your business has been valuable to you… but as you near retirement, what are you to do with it?
Sell it? give it over to your kids? perhaps you could engineer a management buyout? or God forbid maybe you’ll have to close it without realising value or keep working in it until you no longer can.
Selling is probably the best bet, but in reality, very few businesses are actually sold outright and even less reach a price that the owner places on these. As the baby boomers start to retire there are literally hundreds coming onto the market every month with little to no chance of being sold, especially while buyers are all looking for a dot.com. Even worse, if you're business is still reliant upon you being there, it's of no value to the people actively looking to buy.
But, given that you have some time, perhaps there’s a better option that lets you engineer a transition for your business into something of lasting value or to a point where it does become attractive to a buyer.
I do two things for businesses:
I dramatically increase business profitability without massive growth.
I design processes, systems and procedures to allow for the owner to transition out of the business whilst the business continues to grow.
Both dramatically increase business value, the second increasing both the multiple (of profits) that someone will be willing to pay and increasing the attractiveness to a buyer, who doesn't want to buy a business that's reliant upon the owner.
A business that was making R2 mill profits in the year and valued at 2,5 X would be worth R5 mill now making R3 mill in profits but at a multiple of 4X is now worth R12 mill and is much more attractive with its systems and processes humming along nicely.
If this sounds attractive let’s meet and discuss how to engineer the perfect transition for you. Don’t wait until you have only few options left.
Contact me below.