ArticlesBlog

ABC Business Sales – A Plan for 2019 with Mike McRoberts

ABC Business Sales – A Plan for 2019 with Mike McRoberts


We’ve been talking to Kiwis who have been buying and selling businesses. Those candid stories have given us an insight into the challenges and rewards involved. But what about an independent view of
owning a business, of buying or selling and what’s going on in the market? Few
could be more qualified than Hank Withers, ASB’s General Manager for
corporate banking. A professional with decades of experience working across a
number of industries. At the end of the day, business is about people, and you need to be selfless
about creating success for others and helping other people flourish and do
well, and if you can do that successfully then you’ll be successful
with t hem. What makes a good business? The people component, financial, and then operations. I think if you get those three things working together really well, you’re gonna see a good business What makes New Zealand’s economy unique is that it’s built on SMEs, or small to medium enterprises – companies with an annual turnover of less than $10 million make up 87% of
New Zealand’s businesses. There’s over 400,000 SMEs in New Zealand, that’s the backbone of our economy it’s also the backbone of a lot of the
innovation that’s happening in New Zealand, it’s creating most of the jobs in New Zealand and it’s an exciting place to be. So what are the implications
for New Zealand with that ? You look what’s going to happen over the next 10 years there’s going to be 580,000 New Zealanders who will
reach that retirement age over the next 10 years. So that has huge implications for society for our economy and also for business and so you’ll see with that
there’ll be a lot of transition of business owners that have set up their
business 20-30 years ago, put their heart and soul into it and are now reaching retirement age and thinking about how do I sell my business, how do I
maximize value or what does that process look like? And you know, they need a hand and
they need some really good advice and some sort of support. Recently I met Grant and Denise Lumsden who sold out of the Total Span franchise
network using ABC Business Sales. Their books were in order, they had an ongoing business plan for the new owners and a willingness to make the transition as
smooth as possible. They were on the market for 10 days. But a recent survey suggests most New Zealand businesses would struggle to replicate Grant and Denise’s success. About 35% of business owners are
thinking about selling in the next 5 years, so quite a high proportion, it’s a
big number and two-thirds of them weren’t prepared for that sale and
didn’t have a plan in place, so that is concerning, but it’s also a
big opportunity for those business owners to start thinking about it,
because they have got time, but the more time you have the better
prepared you are. That figure of 2/3 who haven’t done any planning, that’s astounding. Yeah it is a huge amount if you’re thinking about selling your business
even if it’s 3 years ago or 5 years away, it takes a long time to sit
down and get your business ready for sale, longer than you think, and a lot of
that is typically to go through a sale process and getting your business ready,
anyone who’s coming in to buy your business if you put your hat on as if
you’re the buyer of your own business, what would you want to see? So how would a broker help with that? For me it’s around trust, it’s around professionalism it’s around experience, so having a good broker will help you through that
process, professionally and create an outcome for you that’s going
to maximize value for you as a business owner. Hank withers says when it comes to
preparing for sale there’s no better time to get started than now and he has
some special advice for those many business founders now looking to sell. Having a transition plan in place is really important but also having someone
who’s going to come and run the business without you being there as the founder
is really key and sometimes it takes time to find a good management team that can step into that role. If you’re considering selling your
business in the near future then Hanks advice will probably resonate with you –
now is the time to start a plan.

Comment here