Succession Planning

Making your Business more Valuable

At some stage you will decide to leave your business, whether it be selling your business, retiring or choosing to do something else. Having an exit (succession) plan in place will help you to smoothly transition out of your business.

A well-executed succession plan will:

  • drive the growth of your business
  • see your business well prepared and at peak performance,
  • maximise the value of your business,
  • reduce taxes, and
  • set the stage for a successful retirement and a successful outcome for all your hard work.

Family-run businesses particularly benefit from succession planning as two additional outcomes are the preservation of harmony within the family as the business is passed down to family members, and implementing processes along the way to ensure the business does not crumble the minute you hang up your keys.

Unfortunately, far too many business owners do not take the time to develop and implement a succession plan and wind up weakening their financial position, or make a really bad exit.  

Business owners who are not prepared, or under-prepared, when exiting their business will usually confront one or more of the following issues:

  • Expose themselves to opportunistic buyers looking for bargain-basement acquisitions
  • Their business valuation is significantly reduced, eg. wrong pricing, wrong structure
  • Pay too much tax on exiting, or
  • Failing completely – unable to sell or transfer ownership of the business successfully

The valuation of your business today is not always going to be the maximum value that you can reach and it is important to start the process now to plan for your eventual exit.

Located in Perth, Western Australia,  Baggetta & Co’s succession planning services are focused on helping business owners to realise their business’ potential value, grow with the end in mind, and maximise their return upon exiting or the sale of their business. 

Our 5 stage process

Our 5 stage process of succession planning identifies, protects, maximises, extracts and manages the value of your business so it can be passed forward intact.

Stage One Stage Two Stage Three Stage Four Stage Five
IDENTIFY VALUE
Protect Value
Maximise Value
Extract Value
Manage Value

In our experience, business owners who prioritise ‘preparation for the sale’ of their business and have prepared in advance of the time they wish to exit, will achieve a better sales outcome and are more likely to exit successfully.  They will also ensure the buyer acquires a good business, and their customers and staff are looked after.

The most successful business succession plans are those that have been carefully and slowly considered over a period of time, implemented gradually, constantly monitored and reviewed, have realistic strategic outcomes and ‘begin with the end in mind’.  In our experience, a minimum of 5 years to a maximum of 10 years from date of exit make for the most successful exit strategies.

Planning how to exit your business long before it happens will maximise the value of your business on exit and ensure you have aligned your business performance and value with your personal and financial goals. 

Baggetta & Co is an Accredited Adviser Firm of Succession Plus, and have been selected as industry experts from around the country having many years of business experience and practice in advising business owners. They have undertaken the Succession Plus induction and advanced training programs and are licensed by Succession Plus only after rigorous testing and accreditation.

Baggetta & Co are authorised to use Succession Plus proprietary models, tools and templates to assist clients to maximise business value and achieve a successful exit. They are subject to our internal quality control models and come with our endorsement. 

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