Laying the pavers for the future
With Australia’s low interest rates and low economic growth, it has never been more important for business owners to make informed decisions about the future of their companies.
“Most businesses are underprepared for exit, succession or other evolutions, and haven’t prepared a succession plan or exit strategy,” says our managing partner Ken Matthews. “Australia has an ageing population and the Baby Boomer generation is heading for retirement, so their companies’ unsecured futures are an increasingly significant issue.”
The process of extraction from – or acquisition of – business is lengthy but ultimately inevitable, and our September accounting and advisory event provided our clients with a full briefing on the planning and forethought – the steps or paving stones – to successful business exit or succession.
Guest speaker Charles Jennings, the chairman of Stonehouse Corporation (a company that makes private investment into Australasian businesses), offered a unique insight into business acquisition from the purchaser’s perspective. Identifying Australia as “a structurally underserviced niche”, he spoke of the challenges that arise from such a transaction.
Our second guest speaker, Mick Wright-Smith from the Commonwealth Bank of Australia’s corporate finance team, helps companies acquire other businesses. He identified the business attributes that attract capital and highlighted “value is enhanced by scale and by specific value drivers that can be articulated and demonstrated”.
Both Charles and Mick reinforced the importance of people and culture as value-drivers in the business acquisition process.
Rounding off the presentation, Ken discussed the multitude of ways a business can evolve and highlighted the vital roles of forward-planning and leveraging opportunity in achieving successful exit strategy outcomes.
At Matthews Steer, we provide support and advice to company owners seeking to make informed decisions about business planning and our three-phase strategic planning and outcome mentoring assists clients in this process. This 12-15 month program is supplemented with a government funding grant and counsels business owners as they ‘Lay the Pavers’ for their own successful outcome.
Opportunity exists and the timing is right. The challenge is to put aside some time to start thinking about the future!
If you require additional information on business growth or transition, please contact Ken Matthews at Matthews Steer on 03 9325 6300.
If you would like to register your interest in Matthews Steer’s regular accounting and advisory events, please email email@example.com