It’s your business—you’ve invested time and energy, but has the time come to consider selling or transferring it? Here’s some advice for a successful transition.
Experts agree that it takes an average of seven years to complete a successful transfer. Only about one third of the 100,000 businesses that will be carrying out a transfer in the next ten years will do so successfully. About 91% of entrepreneurs do not have a succession plan. Is this your situation?
You need to surround yourself with the right professionals for this process. One benefit is that they can make keep discussions on track and foster a smooth transition. It’s also important to keep in mind that this transfer may take place gradually, over several years.
Cover all the bases
Make sure you have all of the experts you need for a successful transfer. There are numerous facets to an organizational change of this magnitude: human, financial, tax and legal, among others.
Work with experienced advisors
Call on advisors with business transfer experience who can see the big picture, because the success of this process depends on how well the advisors can work together as a team.
Reflect your business’s situation
Choose one person from the group that you trust, who knows your business’s situation and understands the related human and interpersonal issues. This person can act as the “integrator” with an overall view of your needs and objectives. That person’s role will be to identify your needs and call on the right resources at the right time.
Have an objective observer
Encourage neutrality. The professionals must be capable of giving you an objective opinion. To ensure the business’s longevity, they should consider the needs of the transferor and transferee in the process. This may include, for example, doubt about the transferees’ abilities, questions about everyone’s future role, the business’s value.
Generally, the following experts are involved in a successful transfer:
- specialists in business transfers, strategic planning and human resource management;
- an account manager,
- a financial planner or development capital investor,
- a business valuation specialist,
- a tax specialist,
- a lawyer,
- an accountant,
- a notary
- a communication management consultant and family mediator and,
in some cases, an industrial psychologist.
By surrounding yourself with the right experts, you’ll be well positioned to ensure a successful business transfer!
08 Mar 2018 | Written by :