Transition to Retirement

Planned Your Transition to Retirement?

If you have not planned your transition to retirement or sale of the business, you will have difficulty getting the best price or passing it to family members smoothly. The recent MGI Family and Private Business Survey 2010 surveyed 5000 businesses across Australia.

Disturbingly, the study found that the average age of business owners is 55, and that 46 per cent of family business owners are actively planning for the future sale of their business but are not necessarily spending enough  time planning their Transition to Retirement.

This is clearly going to lead to many businesses coming on the market in coming years, and many will not be able to achieve this. What’s more, it means that it will be a buyers market, so when you want to sell your business, you’ll be joining a long queue of hopefuls.

How will your business stand out in the crowd

Twenty-five per cent of the businesses surveyed said they had been approached by someone wanting to buy their business but many were not sale ready and had not planned for transition to retirement at the time. If your business is not sale-ready it is unlikely that you will be able to maximise the price you could get for it.

  • Do you know what your business is worth?
  • Do you have your business well systematised?
  • Do you have key staff in place that can run the business when you are not there?
  • Do you have a succession plan?

When you transition to retirement these are just a few of the things you need to have in place, whether that be a sale or succession . It is important to have your business sale-ready, even if you are not actively trying to sell it.

  • Can you realise the full value of your business if someone offered to buy it today?
  • Do you know how and when you will sell your business and for how much?
  • How will you find a willing buyer?

Another challenge (faced by 37% of owners) was not having enough liquidity to exit. If you can’t withdraw enough funds from the business to support your retirement or next phase of life, it causes difficulties in passing the business on to other family members when the time comes.

We can offer a comprehensive review of your current plans or help you plan and develop a suitable transition to retirement, one that will produce a better outcome for you in the long term..

Start Planning Your Transition to Retirement Now

Call (04) 3873-3789

Toowoomba – Dalby – Warwick – Gatton and Districts.