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A gradual exit to a talented new leader as the owner steps back over time to focus on other initiatives or interests, often proves to be a better path to optimising value and reducing risk. Your existing business could remain the best medium or long-term investment you can make, with reduced daily involvement needed from you.

Outright sales don’t always achieve this and many businesses for sale don’t sell, let alone secure the owner the price they need to maximise their lifestyle. While an advertised sale process used to be one of the only exit options this is fortunately no longer the case.

Our history of success has allowed owners to reap rewards both personal and financial over an extended period, and far more than what they could have achieved through an outright business sale.

Why?

In a typical example you may sell down 25% a year over 4 years. The business is revalued at each tranche of equity so while the business grows you get higher capital payments. You also still receive dividends based on your shareholding while working less in the business and not at all in the latter stages.

Not exiting but want to grow? What’s often required is fresh talent with capital working alongside you in your business. Through a search process Platform 1 finds the right person to partner you and success can far exceed what you thought possible.

Each business owner's goals are different and unique - as will be your Platform 1 programme.

 

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Is Business Owner Transition right for you and your business?

The key determinant on whether Business Owner Transition is right for you is whether your business has growth potential that a talented person with capital can exploit. 

The general criteria is :

$2M to $20M turnover

Must have growth potential and be profitable

Established businesses – no start-ups

Owner must be open to a Business Partner working in their business and a more gradual exit- generally over 2-4 years

Because you still get dividends and higher capital payments as you exit, you will create more wealth over time than an outright sale.

 

 

What is Business Owner Transition ?

Business Owner Transition is a method of exiting a private business, over time, to an external talented person with capital. This person works full-time in the business and buys shares in the business over time and to an agreed plan. This is normally 25% a year over 4 years however other structures can be utilised. A governance process is set up to ensure the transition meets your needs.

Why a Gradual Business Exit?

Many business owners are left frustrated with the outcomes of an outright sale process. If the business does in fact sell they often don't get the value they expected and can the new owner help maintain your legacy ?

What are the business owner benefits of a gradual sell-down?

Benefits

  • Enjoy a lifestyle outside the business with ongoing and growing income, plus have free cash.
  • Continue to work in the business doing what you enjoy, while sharing the load with a talented manager who continues to grow the company.
  • As the Value of your business grows, any future equity offered is based on the revised value. You continue to receive dividends and higher capital payments.
  • See your business go from strength to strength with carefully selected new leadership.
  • Maintain your legacy
  • Gain greater wealth than through an outright sale.

Every business owner's goals are unique - as will your Platform 1 programme be.