Succession & Exit Planning
At 7619 Group, we understand that the process of selling a business can be a challenging and stressful time for entrepreneurs. The exit of a business holds major implications for the personal lives of the owners and the livelihood of the business moving forward. However, with the right support and guidance, the process can be made smoother and more successful.
One of the biggest challenges facing business owners is being misled about the value of their business. This can result in a disappointing process and outcome, with owners feeling let down and frustrated. In order to maximise the value of their business and minimise the stress associated with the sale, it is crucial that owners are provided with the right support and guidance. Another major concern for business owners is the prospect of being tied into a long-term earn-out. Being treated as an employee, rather than the boss or owner, can be a harsh and unpleasant shock for many.All too often, things go wrong and the final earn-out figure is never reached, leaving business owners feeling frustrated and let down. At 7619 Group, we can help you navigate these challenges and overcome them. Our focus is on collaborating with you through the entire process, from preparing your business for sale to maximising its value.
We understand that every business is unique and requires a tailored approach, and we work closely with you to ensure that your business is presented in the best possible light.Another hurdle to selling businesses in Australia is the current market conditions. SME business sales are averaging a multiple of roughly 2.5x EBIT, which is much lower than in previous years and can be disappointing for business owners who were hoping for a multiple of 5x or more. This is due to the fact that it is currently a buyers’ market, with a disproportionately large percentage of business owners looking to exit as a result of the baby boomers turning 70 in 2016. There simply aren’t enough buyers to support the multiples that we have been used to.
This is due to the fact that it is currently a buyers’ market, with a disproportionately large percentage of business owners looking to exit as a result of the baby boomers turning 70 in 2016. There simply aren’t enough buyers to support the multiples that we have been used to. However, at 7619 Group, we believe that the best way to increase the chances of selling your business is to plan, prepare and present it to the market properly with realistic expectations. We have extensive experience in the field and have looked at hundreds of businesses presented to us by brokers. We have yet to come across one that meets all of the criteria for a successful sale, but with the right preparation and guidance, we believe that any business can be sold.
In conclusion, selling a business can be a challenging and stressful process, but with the right support and guidance, it can be made much smoother and more successful. At 7619 Group, we are dedicated to helping entrepreneurs navigate the process and achieve the best possible outcome. We focus on collaborating with you every step of the way and providing tailored solutions that are tailored to the unique needs of your business. With our help, you can achieve the best possible outcome for your business and for yourself.