Business Exit Transitions Over Time
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.
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.
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
Every business owner's goals are unique - as will your Platform 1 programme be.