In 2005 the DTI's report ’Passing The Baton‘ suggested over 40% of UK family-owned businesses would experience ownership change in the next five years, but only 5% of them would be prepared with a formal transition or succession plan. Yet research indicates businesses with clear transition plans achieve much greater wealth and value on exit than those without.
Transition planning is more than just succession planning. It's the process of moving from one business position to another in response to a business event, such as a change in strategic direction, a change in management team, a crisis point or, most commonly, the exit of an owner.
Transition planning is not a one-off event, but a process which needs to be planned for and managed over a period of time, to ensure maximum wealth and value are achieved on completion.
Why don't owner-manager businesses plan transitions if they're so vital?
There are several reasons including fear, lack of time or understanding, and simply not knowing how or when to do it.
Clarity, in conjunction with ROCG, has developed a proven and practical transition planning and management programme to help privately owned growth enterprises (POGEs) through the process. Based on a roadmap concept, it's implemented by consultants with extensive experience of working with POGEs and many years of successfully applying this valuable programme.
The Clarity programme starts with an in-depth analysis of your current situation, both personal and business, and moves through these distinct stages, with clearly defined actions and outcomes:
- planning
- value building
- grooming
- preparation
- marketing
- negotiating
- settlement.
Don't put it off - plan with us, now
Transition planning and management will affect every privately owned business at some point in its lifetime. The key is to plan ahead and start as early as possible.
For more information about our innovative and effective transition planning and management programme, please contact us - we'll be happy to explain it all.