Right around Australia business owners may be wondering who they will sell to when 81% of baby boomers are looking to retire in the next ten years? In WA’s South West and Peel Regions 40% of businesses are expected to sell in the next five years, so the South West Area Consultative Committee (SWACC) is asking its region’s business owners”
“Will you exit a winner – or just exit?
What will your life be like after you retire? Freedom or restriction?
You need succession planning!”
A series of workshops will run over March 2008 at a cost of $77 for the day. Attendees will receive a one page plan and hear from local businessowners about their experiences with succession planning.
Succession is the transition of ownership to the next generation whether it is by sale, generational succession or by realisation of assets.
Putting in place plans and processes that help your business run smoothly without your input will enable a smooth transition of management which will ensure the continuity of the business.
This will make your business more desirable to a wider group when you decide you do want to exit.
The South West and Peel Regions are a hot spot for baby boomer business owners and with a high retirement rate in the next 10 years this could create a slow crisis for the business community if buyers cannot be found.
To address this, business owners will need to think like Mick Perrella in the following Case Study and be prepared to adopt flexible strategies to encourage a sale.
Case Study – A Successful Sale And Transition
Former Manjimup Décor and Tiles owner Mick Perrella was confident he was not going to be one of the 80% of business owners that fail to sell their business, putting his retirement in jeopardy.
Mick and his partners worked hard over a two year period to put together figures, historical data and a solid succession plan to show potential buyers.
“We were able to show them the return they could expect from the business and how much effort was needed to gain that return,” said Mick.
“When we eventually sold I stayed to work in the business for one month after the sale and my wife is working for three months as a paid mentor to help with the work and to pass on the knowledge of the systems.”
Statistics show that almost one million small business owners will be exiting in the next 10 years and half expect their business to fund most of their retirement but with most planning to sell, it is expected there will be a huge over supply and with fewer buyers, many businesses won’t sell.
“The hand over process is vital to maintain the repeat business. Making sure that your vision is passed on to all the staff that you employ by empowering them so they can make decisions and have relationships with clients, is also essential.”
Registration forms can be obtained from www.swaccwa.org.au or contact Lynda Spencer on 08 9791 4552 for further information.
For more info you can contact SWACC Executive Officer Lisa Shreeve on 08 9791 4552 or 0418 617 798.
The region covers an area of 5,600 square kilometres and extends from 35 to 145 kilometres south of Perth. It incorporates the City of Mandurah and the Shires of Boddington, Murray, Serpentine Jarrahdale and Waroona. Peel has a population of almost 90,000 and is the fastest growing region in Western Australia and Australia with an average population growth rate of 3.2% from 2001-06.