Owner Reliant Businesses

Rob Goddard
Managing Director
Evolution Complete Business Sales Ltd
info@evolutioncbs.co.uk

 

I Have been responsibile for literally hundreds of successful business sales over the past decade and have found that one issue dominates business value, ‘Succession Planning’.

There are many dozen factors that affect business value for potential acquirers and the degree to which a business is reliant day-to-day on it’s shareholders comes top of the list.

Without an established 2nd tier management team in place, buyers often believe they could be buying “a car without an engine.”  As a result they will either substantially lower their offer, or decline interest completely.

As an owner/manager, it’s therefore critical that you build a senior management team to succeed you once you have exited the business.

By doing this now, you can significantly improve the sale price of your business, when the time comes.

Succession planning is a key value driver for acquirers, it makes the deal less risky for them and therefore they are prepared to pay you more for your shares and will allow you to exit the business promptly.

If you require guidance, we can help through our “Value Improvement Programme” for more detail please email info@evolutioncbs.co.uk

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