Blogs

Been Delaying Your Exit Strategy ?

• Oct 30, 2024

With increased business confidence and a lowering of the OCR, Platform 1 is already starting to see  an immediate acceleration of business owners looking to revisit the business exit strategy that many had "parked up" over the last few years. We expect that to build further over the next 6-12 months.
 

Are There People Looking To Step In ?

There is a strong pool of talented people available now. However In 2022, 1 in every 6 people in New Zealand were 65+ years. In 2028, 1 in 5 people in the population will be 65+ years which could put pressure on the available pool of people to come into these businesses in the future.

If you are in the zone now for exiting, starting the process now is likely to give you more choice of successors.

Those entrepreneurial people looking to get into a business are also starting to renew their interest in part due to lower funding costs which are predicted to get even lower. This coupled with a realisation that their house values should increase makes them feel wealthier even if it's just on paper. More of these people will come into the market after the Christmas rethink.
  

Why Is Now A Good Time ?

• Business confidence is continuing to increase and most people don't see a repeat of the last 4 years
• Interest rates are lowering and giving aspiring business owners more confidence on funding
• Exiting over time allows you to benefit from the upside if your business has growth potential 
• Waiting is a guessing game - who has a crystal ball ?
• People reassess plans during the Christmas break so preparing now for a campaign to start in mid-January can uncover a wider pool of people and increase your options.

Getting on board a Business Partner now as part of a succession plan is an option that allows you to exit over time and extract more value from your business while improving your lifestyle.

About the Author:

Mike Warmington is a Director of Platform 1 NZ Ltd who specialises in using executive search techniques to find people with capability and equity for mid market business owners wanting to transition out of their business.  

www.platform1.co.nz