I have had a couple of meetings recently with a lovely couple in their early eighties who are still running a business. Both are struggling with age-related health issues, and they are having trouble agreeing on what the exit plan for their business is.
They have a few options. One is to involve other family members (they have three children), and pass the knowledge and the business down the line while they are still around to be able to help. But in their case, none of the children is interested, and there is no obvious choice among other relatives.
Another option is to involve employees as shareholders. This may be the way they go, and they will discuss this. Someone like Barry Vincent would be a great contact for them if this is their decision, and I was able to give them a copy of Barry’s excellent pdf about their options. He can help them to understand what is involved, and also help with insurance so that the shareholder arrangement still works if something happens to one of the shareholders.
Yet another option is to sell the business to a third party. In this case, they have had the business on the market but have yet to get anywhere. It could be worth looking at again and getting someone like Yusuke Inui involved to help sell the business.
And the last resort is to close the doors and walk away simply – liquidation. This would be a huge shame because this business would have a great growth opportunity if someone with more energy were to run it. It is a very well-known business in the local area, and it is worth some money if they could sell it.
The biggest problem is, as the husband told me, “We should have had this conversation twenty years ago”. Having an exit strategy should be part of your business plan. It is now physically and mentally difficult for them to make wise decisions about the future of the business.
Also, do you want to work until the day you die? By getting out of the business now, with some money in the bank, they can spend their remaining years resting and enjoying their family. Not just working and stressing about the business.
Yes, they should have had the conversation twenty years ago. Or thirty. If you are unsure how you will leave the business when the time comes, contact me. I can help you work through the options, introduce you to people who can help, and relieve stress.
Running a business is a great way to live – until it’s not. Get out gracefully. I can help with that.