Exit & succession planning - Team Business
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Exit & succession planning

How to get five times the price for your business in the next two years? – Start planning now!

 

When the time finally arrives to sell-up, most businesses we meet actually set out to undersell themselves. Tragically when this happens owners lose the one opportunity to capitalize on a lifetime of hard work and investment.

 

What you need to know is that the key to making your business an attractive proposition is to start early. To this end, start your preparations by embedding real value in the business two or three years before you want to exit.

 

Three common handicaps to getting a high price

 

At the critical point of sale, we see three major problems create disappointment time and time again. Check these out, are you making these fundamental errors?

 

  • The business lacks a strategic plan that put the business’s prospects in the best light. The business cannot show evidence that there is a winning strategy that has the buy-in and support of everyone in the business and that there are on-going, robust and realistic action plans forecast to make measurable improvements and grow the business profitability.

 

  • Unless companies have undergone a structured programme of business improvements, they are usually unknowingly inefficient. When this is the case there is a lot of waste and unexploited potential. With Hoshin Kanri planning you remove these constraints. The net result is that sales, margins and profits soar. Rising profits greatly increase your capital value sometimes by a factor of three to five times.

 

  • The business is still far too dependent on the existing owners. This factor alone increases the risks for anyone taking over. And this crucial fact reduces the price buyers are willing to pay. In these circumstances, the business is unable to demonstrate that it has the potential for continuity. In other words, there is no coherent management structure visibly able to maintain the competence of the business processes without your personal intervention

 

With careful advance planning that overcomes these drawbacks, you can achieve a realizable price for your business at least five times the current one.

 

The key to a successful exit is to demonstrate the future potential of the business.

 

Our Hoshin Kanri planning programme is designed to help you remove the above key problems that hold back your sales price.

 

  • Hoshin Kanri helps build strategic capability by developing an effective management team capable of taking over from the current ownership without letting things slip.
  • An existing track record of business improvement implementation with demonstrable increases to sales, productivity, margins and overall profits,
  • On-going action-plans aligned with a well-thought through strategy that identify weaknesses, waste and problems and then provide detailed countermeasures.

 

The impact of Hoshin Kanri improving each of these three factors provides a highly attractive proposition to prospective buyers and so multiplies your capital value by three or five times.

 

Click here to download our white paper on Hoshin Kanri or contact Jeremy Old on 0845 0945 819. Email Jeremy@teambusinessdevelopment.co.uk

 

You are in safe hands

 

Jeremy Old has twenty-five years experience as an independent management coach to small and mid-sized enterprises and non-profit organisations. He has facilitated 54, strategic change or business improvement assignments across a wide range of industry sectors. Using Hoshin Kanri he yields an estimated average 33 : 1 ROI for clients. He is qualified to MBA level, with a post-graduate diploma in psychotherapy.

 

Jeremy is also author of ‘Reinventing Management Thinking; using science to liberate the human spirit’. This groundbreaking management manual focuses on the role stress plays in reducing productivity and profits in the workplace.

 

 

Read case studies …

Hoshin Kanri helps you orchestrate all the actions needed to get you ready for a profitable sale.

What our clients say …

 

“… The most exciting thing to have happened since I set up the company… Not only do we now have a much clearer overall direction, but the planning process disciplines us to focus on exactly how we will fulfil our aims.” Clive Elliott, Elliott and Hayward Partnership, agricultural contractors.

 

“Instead of having departmental rivalry, each department can now see that what they are doing may be causing a problem for other departments. They are now far more supportive of altering their own ways of doing things to assist the needs of other departments.” Martin Daniel, production director, BAS Fine Art Printers

 

“We’ve achieved more changes in six weeks with these team planning workshops than I’ve seen in twenty years of my time here.” Dave Medhurst, Projects coordinator, Steelfields Ltd, concrete batching plant manufacturer.

 

“The improvement projects set up by the planning team have introduced an array of initiatives including lean manufacturing techniques, such as the 5 ‘S’s, a works welfare committee, a performance pay scheme for the whole staff, and widespread NVQ training. We are already experiencing reductions in scrap generated and are projecting a 25% savings in the despatch department. Basically the whole place just seems a lot more organised.” Phil Williams, Operations Director, Holloid Plastics Ltd.

 

What if you could increase your exit value by five times in two years  – Read the case study