If you were born during that post-war period, you are, like me, what is often referred to as a ‘Baby Boomer’.
If you are also a business owner, the chances are that you have started to think about your exit and succession planning from your business.
The problem is that because of the ‘boom’ there are an awful lot of you and you may well find that you are in a weak position to sell, because so many businesses are coming onto the market at the same time. This obviously creates a strong buyers’ market – great if you are on the acquisition trail but not so good for us boomers.
About 80% of the UK’s personal wealth of £6,700 billion is owned by people aged over 50 (source: The Telegraph, June 2012) – much of it in the form of business assets, I suspect.
So, what do you do if you want to realise value from your business? The record low interest and annuity rates that we now have mean that, if anything, the sale proceeds from your business need to be more not less than previously.
For many people, including nearly all of K&H’s clients in recent years, the solution is not to sell at all but to look to pass the business on, either to family or to a management team.
This can be fraught with all sorts of emotional, financial and tax traps that make a straightforward sale seem like a piece of cake in comparison.
This is one of the reasons why Kirkpatrick & Hopes has developed a specialism to help these business owners over the years. We call it Income and Share Ownership Planning – ISOP.
To find out more about ISOP, click here.
My thanks to Rob Goddard of Evolution Complete Business Sales whose recent ‘baby boom’ article inspired this blog posting.