Both John and I have been talking to clients that are looking to sell their business recently. They’re at the age and stage when it’s time to look at how to get out of the business and of course they want to maximise the value for the sale but also to ensure that the business carries on.
An ageing population, combined with the dynamic of younger generations who seem less motivated to own their own business, tests long held assumptions that the sale of our businesses will be our future superannuation.
SMEs need to focus on extracting the capital value of their business, and with an increasing number of those businesses expected to come onto the market in the next few years, we can expect the gap between the good and the bad to grow.
Good businesses will continue to sell and command a high price, whereas poor performing businesses will at best come under greater price pressure and, at worst, be unsaleable. Read More »