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Why Succession Planning
This document summarizes a succession masterclass presented by Craig West in February 2018. It provides biographies of Craig West and other presenters, Michael Vincent and Donald Poole. It then lists accredited advisers across Australia that work with Succession Plus. The document discusses trends in business succession planning and the psychology of succession. It introduces the M3 framework for succession, which considers the business, money, and self. It promotes Succession Plus' 21-step succession planning process and accredited adviser recruitment. The document concludes by listing upcoming adviser masterclass topics.
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Why Succession Planning
- 1. Succession Masterclass Presented by CraigWest February 2018
- 2. Why Succession Planning? Marketresearch and trends and The Psychology of Succession
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- 4. Craig West CEO &Founder B. Bus (Mgmt.), M. Bus (Acct/Fin), M. Tax Law, CPA Craig’s practice Succession Plus is the largest Business Succession and Exit Planning firm in Australia and provides mentoring, advice and strategy for clients looking to prepare their business for a successful exit. In March 2014, Craig was appointed Executive Chairman of the SME Association of Australia, an organisation focused on improving the success of SMEs in Australia. In October 2014, he was awarded the Exit Planner of the Year at the Exit Planning Institute Annual Conference in Texas, USA as a result of his innovative development of an exit planning process to help business owners maximise business value and achieve a successful exit. During 2015, Craig commenced a Doctor of Business Administration on the topic of using Employee Share Ownership Plans (ESOPs) as a Business Succession and Exit Planning tool. Craig’s proprietary structure - a Peak Performance Trust - has won the Australia-wide award for the Employee Share Ownership Plan of the Year twice in four years.
- 5. Michael Vincent isa Chartered Accountant and Strategic Business Adviser who has amassed a wealth of experience as both an External Business Consultant and Senior Executive of Corporate Australia assisting businesses small and large to maximize business value. As a former Senior Investment Banker with a successful track record of having advised businesses on buy/sell transactions totaling close to $2 billion (and counting), Michael provides invaluable insight as a lead adviser and mentor on raising capital, acquiring for growth or realising the equity in your business. Donald Poole started his career in 1974, starting at a suburban accounting practice. In 1980, he opened a small office in Mooloolaba on the Sunshine Coast. The business expanded rapidly and in 1983 and 2007, the firm moved premises to cater for its growth. Don’s personal business, The Poole Group, now has 7 partners, 38 technical and 10 support staff and handles Taxation, Accounting, Audit, Business Management, SMSF and Investment and Insurance Advisory Services. Don has assisted countless business owners through a successful exit, with his client base representing a broad section of industry types and sizes. Scott Patterson has extensive business and professional experience, including over 20 years as a principal of a highly successful public accounting and financial planning firm. His passion is working with clients to improve the value of their businesses, and create a more certain future for them, their stakeholders and their families. Scott utilises strategic thinking, tailored advice and integrated solutions to enable business owners the freedom of determining the time frame and method in which they exit from their business, often their most valuable asset. His expertise stretches across all areas of small to medium enterprises (SME), including agricultural enterprises.B. Bus (Acct), FCPA, GAICD B. Bus (Acct), M. AppFin, CA B. Bus, CPA, CTA Succession Plus Partners
- 6. Succession Plus AccreditedAdvisers NSW • Sam Walters, Sam Walters Consulting Services, Newcastle • Maggie Orman, Orman Solicitors, Wagga Wagga • Michelle Forrester, The Little General & Co, Parramatta • Peter Foster, Financial Strategic Insights, Caringbah VIC • Andy Gowers & Anuj Shangle, Time Advice, Melbourne TAS • Michael Denehey & Rob Cameron, Collins SBA, Hobart ACT • Emily Shoemark, Snedden Hall & Gallop Lawyers, Canberra • Murray Rankin, Rankin Securities, Canberra
- 7. Succession Plus AccreditedAdvisers WA • Llew Eynon & Natasha Lie, LG Accounting Solutions, Perth • David Porter, Infinity Group, Perth • Brian Woods, Nexus Wealth Management, Perth • Paul Mackell, New Alldale, Perth QLD • Mike Guyomar, Baton Advisory, Brisbane • Jaynesh Gounder, Agilis Accountants, Brisbane • Philip Kelly, Quantum Business Sales & Acquisitions, Gold Coast NZ • Peter Miller, Succession Plan, Auckland SA • Bevan Roberts, Dale Wood Business Sales & Consultancy, Adelaide
- 8. Succession Plus’s Proprietary 21-Step BusinessSuccession & Exit Planning Model
- 9. Investing the timeto develop a succession plan is on of the most important financial decisions a business owner may ever make. Most people go into business not only to earn an income but also to build the value to their equity and to sell, but many business owners do not develop a strategic plan for exiting their businesses. Without one, the value in your business will retire when you do. Enjoy It spells out a practical 21–step succession planning process suitable for any business owner, no matter what their circumstances. Published Book - ENJOY IT by Craig West
- 10. Published Book - BUILDIT by Craig West There are a number of key steps that business owners can take to dramatically improve the financial performance of their businesses. One of these is having an employee incentive program that motivates staff to think and act more like business owners and less like employees. Build It is designed to give you an overview of the key issues involved in implementing an Employee Share Ownership Plan (ESOP), so that when you’re ready to talk about how an ESOP can benefit your company’s growth and profitability, you’ll have a good understanding of the requirements and scope of the process.
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- 12. 55% of allbusiness exits are due to: • Death • Disability • Bankruptcy • Receivership • Divorce • Partnership dispute • Liquidation • Or simply closing the doors
- 13. The average ageof a family business owner in 2016 was 58 years, up from 55 years in 2010. 64%, up from 61% in 2010, would seriously consider selling business if approached. (The MGI Australian Family and Private Business Survey 2013)
- 14. 33% of businessowner-managers are relying either on a sale of their business or continuing family business ownership as the source of funding retirement 58% of family business owner-managers see themselves working in the business beyond 65 years of age. (The MGI Australian Family and Private Business Survey 2013)
- 15. 55% do NOThave a strategic plan. 48% do NOT have a business plan. (The MGI Australian Family and Private Business Survey 2013)
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- 17. Since 2008, almosthalf of business owners over age 50 have delayed their retirements due to the GFC.
- 18. According to ChrisSnider, President of the Exit Planning Institute: 80-90% of baby boomers’ wealth is tied up in their business.
- 19. If you turn50 today, your life expectancy is now 32 more years. (Based on a male turning 50, female would be 35.5 years) - ABS Life Tables, States, Territories and Australia, 2010-2012 34% of retired business owners, up from 31% in 2010, do not have an adequately funded retirement. (The MGI Australian Family and Private Business Survey 2013)
- 20. Well known authorMichael Gerber on Exit Planning: “Having an exit strategy is the ball game for any entrepreneur… the idea is simply to build, grow and sell – whether sell means list, pass on to family, merge, sell to employees or trade sale, there has to be a strategy!”
- 21. “If you wantto have a successful enterprise, you clearly define what you’re trying to accomplish… the extent to which you begin with the end in mind often determines whether or not you are able to create a successful enterprise.” Stephen Covey (1932-2012) BEGIN WITH THE END INMIND Stephen R. Covey The 7 Habits of Highly Effective People
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- 23. Background Bill Hovey’s Statistics Outof 100 business owners: 25 know they should do something about succession 13 have a written plan 7 start on the plan 3 complete the plan 1 is satisfied with the exit
- 24. Money matters less thanyou think… most Australian baby boomers are wealthy!
- 25. Fear (anxiety) outweighsbenefits: • Meaning • Identity • Connectedness • Freedom of choice
- 26. • Exit • Retirement •Boredom • Death
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- 28. Alan Taylor andAllie Taylor, Orange Kiwi, PhD Study on Successful Business Owners Transitions • Business owners are hard-wired to build and run a business • A business owner’s life, business and wealth are interwoven and not easily separated • Significant transitions expose owners (and their business) to internal and external threats and challenges • Exploiting opportunities and successfully exiting requires substantial change for owners, families and the business The M3 Framework
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- 31. The M3 Framework MyBusiness • Systems • Strategy • Structure • Market • Valuation • People • Financial Health • Culture
- 32. • Management • CashFlow • Investment • Legacy • Capital • Philanthropy • Tax • Valuation The M3 Framework My Money
- 33. • Faith • Relationships •Health • Leadership • Values • Personality • Motivations • Legacy The M3 Framework My Self
- 34. My Self My BusinessMy Money My Business My Money My Money My Business My Money My Business My Business My Business My Business My Business My Business My Business My Business My Business My Business My Money My Self My Business My Money My Business My Money My Money My Self My Money My Self My Money My Self The M3 Framework 21 Steps vs M3 21 Steps M3
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- 36. • Fusion vsSeparation • Challenging Dynamic - has to be overcome to move thru process of exit, requires rebuilding some owners view of self, others and the world. The M3 Framework Role Identify Fusion
- 37. The M3 Framework Multi-year,multi-step PROCESS, not an event.
- 38. The M3 Framework BoBurlingham’s Book: Finish Big: How Great Entrepreneurs Exit their Companies on Top • Exploratory • Strategic • Execution • Transition
- 39. The M3 Framework Mostcritical thing is first step: Stage One Report – INSIGHTS.
- 40. “If I canunderstand why, I can bear any how. “ - Nietzche
- 41. Our Step 1is Goal Setting. What might be possible, forward looking, curiosity and imagination (Bill Hovey).
- 42. The first andmost important step is deciding what outcome business owners want for their business. It will differ for everyone in terms of financial and lifestyle goals, but there are a number of key factors to consider and discuss with business advisers and financial planners. Answering the following questions will help in aiming for preferred actions, while also preparing the business owners and making the business better to be able to adapt to alternative routes if needed. Goal Setting
- 43. 1) Do youhave a valuation/sales price in mind for your business? 2) Do you have personal/financial goals that your business sale needs to fund or make time for? 3) When do you want to leave the business? 4) Are you happy to stage your exit over several years? 5) Do you want a lump sum to retire with, or could you work with several payments over time? Goal Setting
- 44. Goal Setting 6) Doyou want to retain any ownership in the business? 7) Do you want to transition the business to a family member? 8) Do you have any key members of staff that would be keen to take on the business? 9) Do you have a potential/interested buyer in mind? 10) Do you have a view of what the business will look like after you retire? Are you interested in leaving a legacy?
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- 46. Accredited Adviser Recruitment Weare looking to expand our national presence with the recruitment and training of 40-50 accredited advisers. Accredited advisers are typically experienced business advisers (accountants, financial planners and business coaches) with an established network and client base who are looking to expand their service offering into Business Succession and Exit Planning. Accredited Advisers guide clients through the 21-Step Business Succession & Exit Planning System with the support of the local partner. This is an excellent opportunity to build additional revenue in your practice.
- 47. Accredited Adviser Recruitment Weare now actively looking to recruit in the following areas throughout Australia. Visit our website successionplus.com.au or email cwest@successionplus.com to find out more about this offer. NSW • Armidale • Bathurst • Bowral-Mittagong • Coffs Harbour • Dubbo • Goulburn • Hills District • North Shore • Orange • Port Macqaurie • Tamworth • Wollongong TAS • Hobart • Launceston NT • Darwin SA • Adelaide VIC • Albury • Ballarat • Bendigo • Geelong • Melbourne • Mildura • Mooroopna • Shepparton • Wentworth • Wodonga • QLD • Bunbury • Busselton • Brisbane • Bundaberg • Cairns • Mackay • Rockhampton • South Gold Coast • Sunshine Coast • Toowoomba • Townsville
- 48. Adviser Masterclass Series DateTopic Mar 8, 2018 Business Valuation – Tips and Traps Apr 12, 2018 Structuring for Succession – Who owns what? May 10, 2018 Small Business CGT Concessions Jun 14, 2018 Family Business Succession Jul 12, 2018 Maximising Value – What are buyers worried about? Aug 9, 2018 ESOP as a Succession Option Sep 13, 2018 Strategic Sales – What are buyers attracted to? Oct 11, 2018 M&A Process – Tips and Traps Nov 8, 2018 Action Plan – How to help your clients and attract new clients.
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- 50. p 1300 665473 e cwest@successionplus.com.au w successionplus.com.au Head Office Level 3, 50 York Street Sydney NSW 2000 facebook.com/SuccessionPlus/ twitter.com/SuccessionPlus linkedin.com/company/successionplus