What do these four numbers have in common: 3.9 trillion, 70%, 500,000, 39%?
They describe the landscape all private-enterprise #business owners and founders in Canada will have to navigate as they look to exit from their companies in the coming years:
· There are over 500,000 private companies in Canada that will need to transition from their current ownership
· Total dollar value of these companies is over $3.9 TRILLION
· 70% of #wealth is lost between the 1st and 2nd generation of family-owned businesses
· Only 39% of private business owners have engaged in #succession planning of any type
The stark reality is that there will be more business assets looking for buyers than there will available capital in the coming years. Business owners considering an exit in the next few years must start planning now to give themselves the best opportunity to maximize the return on their life’s work. They can achieve this by:
· Minimizing the risks in their business. Not just the financial risks but take a comprehensive look at all the factors that a potential buyer could use to knock down your valuation.
· Invest in the unique assets that are sitting in your business that will contribute to a higher valuation multiple. Culture, innovation, systems, and brand are all assets that savvy buyers will recognize and pay for.
· Understanding the best stage in your company’s life cycle that will generate the highest valuation. Timing can play a critical role in maximizing returns.
Assay Advisory is the transaction arm of the Shirlaws Group and helps dozens of companies around the world every year manage successful exit events for our clients. We work to help protect your legacy by maximizing your #equity value on exit. We take a strategic, long-term approach to the sale of a business and view it as much more than a financial transaction. If a sale of your business is in the cards over the next few years we would love to have a conversation about your journey and how we can help.
Drop me a note: mfornasiero@assayadvisory.com