Succession Planning – Is your Business Saleable NOW?

MR ANDY GOWERS from Time Advice reports on Business exit planning.

Time Advice specialises in the area of business succession, and works in conjunction with Mead Partners Chartered Accountants.

According to Michael Gerber, author of the “E-Myth” and pre-eminent champion for business owners, there is only one reason to have a business – to be able to sell it. So if maximising the value of your business is your objective (on your way to that successful exit or transfer), it is critical to have a plan for the risks you face along the way and minimising the amount of tax payable upon your exit.

Are you one of the 88% of small business owners in this country who plans to sell their business in the next 5 years but do not have a succession plan? With 100% certainty, you and/or your business partner(s) will depart your business either voluntarily (eg. retirement, sale or transfer) or involuntarily due to death, disability or critical illness.

Operating and growing your business takes an enormous amount of time and energy. Failure to plan a proper exit strategy increases the risk of receiving substantially less reward for what usually is a lifetime of effort.

The Business Exit Planning Process

The diagram below provides a visual description of the 4 key professionals involved in an ‘end to end’, robust business exit plan.

If you are a business owner and do not have a current Exit Plan or wish to discuss the above information specific to your business situation, contact:

Mr Andy Gowers at Time Advice (www.timeadvice.com.au) on 1300 668 786 or via email info@timeadvice.com.au

 

The E-Myth (Revisited), Why Most Small Businesses Don’t Work and What to Do About It, Michael E. Gerber. Published By Harper Business, 1995. Source, Cameron Research 2010 study of 750
businesses with up to 50 full time employees.
Anuj Shangle & Andy Gowers of Time Advice Pty Ltd are Authorised Representatives of Financial Wisdom Limited ABN 70 006 646 108, AFSL 231138, a wholly owned but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124. This information is of a general nature only and has been prepared without taking into account your particular financial needs, circumstances and objectives. It should not to be construed as financial, taxation or legal advice. Before acting on the basis of this information, you should consider its appropriateness forour own objectives, financial situation and needs. Where appropriate you will be provided with a Product Disclosure Statement in relation to the product recommended to you.

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