Recent research from Xero indicates that 47% of New Zealand business owners don’t have an exit plan in place. The best way to make sure your business keeps thriving after a takeover or your retirement is to have succession plan in place.
If there is no plan in place, it can take a significant amount of time to on sell a business and you could end up getting much less for it than expected. On the other hand, if you get your business ready for sale in advance and have an exit strategy ready, things will run much more smoothly.
Even if you operate a family business and would like family members to take over, clear communication and a plan are needed.
One important aspect of succession planning is to get your accounting and financial records sorted. Most buyers want to see at least three years of tidy and dependable financial records. If you need assistance in getting things in order, please book in an appointment with one of our advisors.
In an upcoming blog we will explore five things to consider for a successful exit strategy.