The Christmas Business Exit Rethink !
It’s been a hectic year for many business owners with the economic climate and the uncertainty that always comes along leading into any election. This one got drawn out and now the coalition government is finalised, we have drifted closer to Christmas.
If you have been contemplating succession it may be tempting to pack up and come back in February or March however you will be missing out on the people wanting to get into a business now.
Maybe you have been talking to Platform 1 or others for some time and trying to pick when to move forward - however waiting is a guessing game.
Access the “Christmas Crowd”
Open rates on our email communications to people looking for skin in the game are higher than they have ever been over the last 12 months. The talent pool is there if you know how to find them.
Christmas is a time when people take stock and evaluate making a change in direction in their working life. They have the time to reflect.
There is a shortage of quality profitable businesses available turning over $2M to $20M. This is the feedback we constantly get.
Our expectation based on experience, and knowing the number of businesses that have delayed succession, is there will be a lot of exit activity in Q1 and Q2 next year.
We are seeing more cases of people leaving it too late to plan their exit. Get a Business Partner with talent on board to help navigate the future.
Platform 1 has a large pool of people who have been looking for good businesses to buy into for some time. They have the capability to grow a business and the capital to invest.
The pool of talent is available but not increasing, due to our aging population, so business owners who are ready to exit may not want to delay further.
There is also a bigger pool of people prepared to buy into a business gradually than outright ,especially in today’s market. A staged exit over 2-4 years may be the best option for your business. Many don’t have the risk profile or all the capital now, to pay full price of the business upfront while the owner walks away (and with their IP still not transferred) .
Why Do Those Looking To Get Into A Business Prefer Our Option ?
- They acquire shares over time and to an agreed plan which can be easier on funding
- They have the benefit of a knowledgeable owner still being in the business
- Having the owner still in the business in some capacity sharing their IP
Don't "miss the boat" and baby boomer business owners who know they are in the frame for succession but have delayed, should act now.
About the Author
Mike Warmington is a Director of Platform 1 NZ Ltd - The New Zealand market leaders in business owner transition. Platform 1 specialises in using executive search techniques to find people with capability and capital for business owners wanting to transition.