Armstrong Watson has recently concluded a survey to help us identify the issues and opportunities facing family businesses when they decide to look to the future. Whatever the size and structure, the main objective remains similar, with a clear focus on providing a desired lifestyle for those close family members. Family businesses are unique and there is not a magic formula to make succession easy or decide on the best exit strategy.
Surprisingly our survey showed that the exit strategy for 15% of family businesses was to just cease trading. This may be for number of reasons:
The option of passing the business on to the next generation is not feasible,
The business is thought t have little value
The owners don’t have the time to manage the sales process or they think bringing in the appropriate advisers may be too expensive.
None of these concerns need to be an issue, as a good adviser will tailor their approach so if selling is not the best option for you and your family, minimal time and expense will be wasted.
Exit Planning
Exit planning is one of the biggest challenges a family business can face and it takes time to get it right. The survey results showed that 8% of owners are looking to exit within the next 2 years. Planning and preparation are key to you achieving the best exit strategy whether this be through succession or sale. There are no simple answers when it comes to what is best however, getting the right advice early on will help ensure all of your goals and aspirations are achieved.
Selling a family business is sometimes a difficult decision but maximising value is ultimately the key consideration in what could be the most important decision of your life.
Armstrong Watson have considerable experience in selling family businesses and this means we are experts in planning, executing and maximising the value of any sale. So whether you are looking to exit now, or in 10 years time, it is worth getting in touch with us for an initial chat to discuss your objectives, find out what your business might be worth and how you can maximise its value.
Pick up the phone and speak to one of our Corporate Finance Team to discuss your succession plans and understand your options. Chris Wright on 0113 2211300
