14,000 businesses owners looking to sell in 2014
- and that’s for NSW only!
- 65% of family businesses state they have no proper succession plans in place
There is an over-supply of business owners looking to retire, move on and sell with little to no reality check on the value of their businesses. Like real estate when there is an over-supply of properties for sale the price will go down.
Reality checks are needed for those that may have an over-inflated idea of the value of their business. A lot of baby boomers are going to be looking at their businesses as their superannuation and will get a rude shock when it comes to sell.
What’s the consequence for the economy? When retiring business owners find that exit values have dwindled simply closing the business is often an easier option, leading to significant job losses, as the SME sector is the biggest employer. With the sheer number of businesses looking to change hands this will undoubtedly have a direct impact on the economy.
“Most business owners sell based on a traditional formula where the key factor is the profit. And in times like these profits are not that great for many businesses”, says Marc Johnstone, partner at Shirlaws Coaching.
“Instead business owners need to focus on other leverage points in the business, which directly affect the value multiple the business is sold at. That’s how businesses within a span of just 18 months can become three times as valuable when sold,” continues Marc.
“Instead of the hyped-up valuations that people get over-excited about, looking at a real strategy that creates a nest-egg for the business owner is far more realistic,” says Mike Boorn Plener, Executive Producer at Business Connector.
“That’s why we’re bringing together a team of top experts in December to help SME owners understand how to create far better value with what they already have,” continues Mike.
Exit Strategy Masters combines experts from Shirlaws, Bluemount Capital, Perspective Group, PDC Creative and others to give business owners a roadmap to massively improve the value of their business when it comes time to sell.
High resolution images and interviews are available on request.
Mike Boorn Plener
0413 313 314
Shirlaws is a leading international business coaching organisation with a successful track record of helping small to mid-tier businesses achieve their vision. Whatever stage a business is at and whatever state the economy and industry is in, they love to work with clients to build long-term sustainable growth for their business.
They are the only coaching company specifically focused not only on the numbers, but on the cultural aspects of human behaviour at work – which drives the success of the business.
The purpose of Business Connector is to be the leading catalyst for better growth and development of the Australian SME sector. In our view entrepreneurs most commonly need a combination of toolset + mindset + connections to bring them into a position where they can not only establish the viability of their business, but safely grow it from a fledgling to a significant and successful enterprise. We provide tools and knowledge through a broad series of events where people get to come face–to–face with the real experts as well as business networking where people get to create new quality business relationships. A range of publications, ebooks and downloadable tools are being released with our inner–core partners to supplement these.
Mike Boorn Plener
P: 0413 313 314
M: 0413 313 314