Many financially successful people build their wealth by being entrepreneurs as opposed to wealth derived from a corporate job. It can be a realistic goal to have skin in the game in a business, especially if this is structured over time.
Starting the process of exiting your business now, makes sense for many business owners. We are three and a half years down the track from the pandemic commencing and many business owners are still in a holding pattern. What is holding out until after the election going to achieve, when there are interested people looking now ?
This brief video from New Zealand Platform 1 Director Mike Warmington ,explains what the market is like now (September 2023) for finding a Business Partner in New Zealand, as part of a succession plan. This can be part of a gradual business exit to a talented person.
Platform 1 take a proactive approach to finding people with both talent and capital. As well as our own extensive database, we use recruitment and executive search techniques to headhunt people who fit the profile to add value to the business.
Listen to this short 2 minute video with Platform 1 Director Mike Warmington
Finding a person with capability who can work in your business and buy you out over time can often be your best succession option.You get to hire your successor and better protect your legacy as this talented person buys your shares over time while they are growing the business.
Watch Platform 1 Director Mike Warmington share a short insight which illustrates the need to exit your business on your terms.
This successful business had imported and distributed a range of products for many years however they did have one key very profitable product that delivered a significant part of their profit . They had a longstanding relationship with this supplier and there was no indication this was going to end.
Are you excited about getting into business ownership but concerned about the security of future business revenue if you buy outright?
Are those contracts secure and will the revenue still flow into the business when the owner exits ? Are there any skeletons in the closet you don’t know about and is the owner desperate to get out now ? Do you really want to put all your investment “on the nose” on day one and step into the unknown without the owner having a vested interest too ?
The Business Owner Transition model is a way to buy into a business over time in a way that de-risks any transaction .
The last 3 years have caused a backlog of business owners to delay exiting their quality established businesses. Some felt in 2020 that they should build back up their businesses or that the time was not right for incoming buyers. Few would have expected that the pandemic would still involve restrictions in place in 2022, and are worn down from it.
