The majority of business owners neglect to plan for their own succession or exit
More often than not, the reasons are psychological. No one likes thinking about their mortality, and entrepreneurs are no exception. Many entrepreneurs are too busy planning day-to-day and they consequently put off succession planning until tomorrow.
Every Business owner should ask themselves the following questions
What if I were not able to operate the Business – what would happen to it? Would family members, co-owners, or employees know what to do, and are their guidelines, tools and systems in place that would help the business survive and thrive?
Sometimes tomorrow is too late. Serious illness, disability or death can catch a business by surprise. A crisis usually creates a high level of stress and it is difficult to make rational decisions in the best interests of a business when emotions are running high. That is why a well-thought out succession plan – is a kind of insurance policy – a plan which is essential to the continuation of the business, no matter what its size or structure.
The Time for Succession Planning Is Now and One of This First Steps Is to Obtain a Confidential Busienss Evaluation
Ninety percent of U.S. Businesses are family owned yet only 30% succeed into the second generation and only 10% survive into the third. (Family Business Resource Centre).
Owners should begin planning while they are still healthy and active in their business. One of the first steps is determining what the business is worth is obtaining a Confidential Business Evaluation.
Ostir Business Brokers has helped hundreds of Business owners who have lacked a clear succession strategy, by preparing a confidential evaluation of their business. Ostir Business Brokers evaluates a Business by reviewing historic financial information, researching the industry, and understanding the specific issues of the business that impact on value. Ostir Business Brokers reconcile this information to actual market sales data – factoring “special or synergistic purchasers” before providing a final value conclusion. Ostir provides Business Owners with a confidential market evaluation without fee or obligation – providing them valuable information which can help them better prepare for their succession or exit.
The Confidential Evaluation is one of the first steps in succession planning and Ostir provides Business owners with a “risk-free” opportunity to experience their capability while receiving valuable information which will help them with their succession plan or exit.