“Succession Planning” – a tool of the wise. Preparing to concede or transfer ownership of a business can be one of the toughest parts of business for owner-managers, but getting it right is crucial if the business is to remain successful – and early planning is key. Equinox Ventures has worked with numerous owner managers and successful entrepreneurs to plan for exit and has gained a sound insight into the fundamentals which create a sound MBO environment as well as creating a business which is likely to become a target for trade buyers.
Succession planning involves transferring ownership and control of a business to new management. The three main options are: transferring ownership to a family member, transferring ownership to a non-family member or disposing of the business through a sale, management buy-out (MBO), management buy-in (MBI) or voluntary liquidation.
Factors that should guide your decision
Ultimately Equinox Ventures is able to guide our clients through a process which helps clarify whether there is an obvious choice of successor within the business (potentially through our Management Due Diligence offering). This could be a family or non-family member who has worked for the business for some time or indeed be someone who knows the business well and who has the defined set of characteristics and business skills to take the business forward to further success.
If an internal appointment is not possible, you might have to opt for an external appointment. However, if you need to generate funds for your retirement, a sale might be your only course of action.
Equinox ventures is able to actively identify the right person to take over the running of your business – a scenario which can be a difficult and exhaustive process. Choosing the right person or team to take over the business is absolutely essential and Equinox Ventures are able to carry out this process offering a bespoke headhunting and further management due diligence process to ensure the candidate is capable and willing to take your business forward.
