Week 9 Succession Planning & Exit Strategies-Sv.03.08.18.pptx

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Franchising & Small Business Presenter : Dr Maurice Roussety Workshop : Succession Planning & Exiting The Business
100% Close down 100% Management buyout 100% Pass on to family 100% Sell externally 100% Merge with another business Sell controlling interest
Common events requiring succession Department of Marketing- 3019MKT 1. Unexpected death, illness or injury to yourself or family members 2. Rapidly changing market conditions which undermine capital value (e.g. GFC) 3. Complex, or simply messy, corporate structures so assets are not where you expected them to be and are not controlled/owned by who you thought would 4. Poor taxation planning leading to a loss of wealth through income tax, GST, stamp duty and other imposts 5. Family disputes, divorces and break-ups in de-facto relationships
Succession planning realities In reality, however, many owners probably won’t be able to sell their businesses when they’re ready, because they’re not taking critical steps toward a transition or toward getting the full value of the enterprise, according to Christopher Snider, president and CEO of the Exit Planning Institute (EPI) . - cant-sell-when-they-want-to/#78e38a1744bd Succession Plans are just one of those things that many business owners never get around to. Although some 80% of business owners intend to retire in the next 10 years, three quarters of all owners do not have a succession plan. They may have a few ideas about what they intend to do, but they have not sought advice, or mapped out their plans. - planning The small-business owner often overlooks their most valuable investment for their retirement and their legacy: their business. Most business owners work tirelessly year- after-year to operate, sustain and grow their companies, but they may not be spending nearly as much time examining planning and strategy. Implementing proper business strategy, in alignment with their goals, will help them capitalize and increase the value of their largest investment. iness-owners-biggest-retirement-mistake.html
The ABS also found 87% of Australian businesses were family- owned, making careful succession planning an absolutely critical process in the near future altusfinancial.com.au
Benefits of succession planning Department of Marketing- 3019MKT Succession is all about outcomes. It is about ensuring you achieve what you want to achieve for your business, your family, your wealth and yourself. By listing some common goals for succession you will quickly see why they should not be left to chance.

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