We all know the statistics about the pending tsunami of baby boomer founded businesses needing to either transition to the next generation or otherwise find buyers in the coming decade. It’s coming like a freight train.
So, how do you get your business ready for your exit? Do you want to literally exit or only hand over operational control? Will you hold on to the equity in your company until your last breath, sell it all or share it around to employees or family before you meet your maker?
Just as there are many ways to step back from the tools or step out of your business, there are just an many options about how you can get your family and your business ready for the next generation to step up or for a new owner to step in.
No two families or businesses are alike. There are a myriad of issues and qualities that make up the unique tapestry of your business and family circumstances. Transition will impact your family and business on many fronts depending on your management team or family dynamics, communication style, who the boss is, who does and doesn’t work for the boss, who your key stakeholders are, timing, financial needs and expectations.
There are many issues to think about. This is why you should start planning well before you need to transition and seek expert help to get you there. No one single adviser can properly guide you through all the issues you need to consider when starting out on your succession journey.
What you need to consider, plan for and implement may include any number of issues, some of may overlap, whilst others are very distinct and specialised. You therefore need a supportive and tailored team of advisers to support you in the process that can work collaboratively to ensure they can assist you to successfully navigate the transition pathway.
You will not benefit from the ‘silo’ advice of experts who do not consider the greater context of your business and your plans when advising you about business transition or succession, especially when you are a family in business. We often tell our clients that we call on our ‘toolkit’ of collaborative experts that we trust implicitly to look after their interests when they need the benefit of expertise we don’t have. We make confident referrals to a trusted team of experts (yes, even other lawyers – ground-breaking, hey?). In our experience, considered and trusted collaboration always leads to best quality outcomes for clients.
The secret is that your advisers need to know what they don’t know. You seek advice from your GP for general health concerns, but you are referred to a specialist when you have a specific more complex medical issue to contend with. Similarly, no single adviser can advise on all issues relevant to your family and your business when embarking on your strategic succession plan.
Having an advisory team with a collaborative mindset that has experience in advising business owners, and specific expertise about advising families in business, is the key to navigating the journey to a successful transition in your best personal and commercial interests.
Your family and business are one of a kind. Don’t settle for anything less than tailored expertise from a team of advisers who are there to ensure the smooth transition and continued success of both.
If you’re about to embark on your business transition journey or you’d like a fresh perspective, get in touch.
We’ve got you.