What’ll happen to your business when it’s time for you to move on?
Kaizen helps business owners maximize asset value as they plan for the next generation of their company.
The decisions you make now are crucial even if you are not planning to retire for many years to come. We can help, whether you are planning to sell your business; pass it along to children, partners or key employees; or if you’re still deciding what you want to do.
Many businesses are cash flow machines that never accumulate an asset value. You can impact your asset value (even if you have a services business) if you structure your business well and plan ahead.
Businesses are usually sold based on a multiple of earnings, the underlying asset value, or some combination of both. Kaizen helps business owners impact these triggers by:
- Increasing earnings
- Improving the stability of earnings
- Putting structures in place so earnings are not dependent the business owners' presence
- Increasing the underlying asset value of the business
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Kaizen can help you plan for the long term. Or we can help you prepare to sell your business in the next 24 months.
Family-Owned Businesses
There are special issues to consider if you have a family-owned business that you hope to pass along to key employees or family members. You’ll want to maximize the value of the business for yourself, and for the next generation.
Preparing the future owners to take over is an important process that shouldn’t be left until the last minute. Gaps in skills will need to be addressed through training and mentoring so that the customer experience and profitability of the business are maintained when the new owners take over.
Kaizen has a long track record with family-owned businesses and understands their unique concerns. We can help you make sure your business is built for long-term success.
Regardless of the exit strategy you choose, careful planning now will reap benefits for you down the road.
Do you need help with your exit strategy?
If you’re wondering whether you’re fully prepared for the future, ask yourself these questions:
- To what extent have you defined an exit strategy for yourself that will allow you to live the retirement that you dream of and maintain a thriving business?
- Have you determined how you will maintain your own income from the business as you take on new partners?
- To what extent have you defined hiring, compensation and performance management systems to ensure that you’re bringing on the right people to lead the company in the future?
- To what extent have discussed succession planning with the existing partners in your business? Do you have a clear understanding of each partner’s personal needs and retirement plans?
- If your children will be assuming control of the business one day, to what extent have you mapped out what that transition will look like?
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If any of these questions have caused you to think that you may need more rigorous succession planning for your business, Kaizen can help.
