How we helped this business owner double his revenue and retire with confidence
It is possible to exit or sell your business and gain a strong retirement income. For so many businesses, succession planning is an overlooked “nice to have” element of business management; an activity to “get to” when the more pressing matters of day to day management, sales, and business execution are in play.
But, without addressing succession, you can put yourself under too much pressure when things are “down to the wire” with retirement in sight. Your team can be left feeling uncertain about the longevity of their roles and the future success of the business.
As a business owner, keen to retire, sell or otherwise leave the business in a good condition, succession planning is crucial.
One of the key services offered by Gibsons is helping businesses to do just this, and we have many case studies to share. Our experienced consultants can support you throughout implementation and ensure increased business value and success, helping you exit on the best possible terms.
Over a 4-year succession planning program, we did exactly this. We supported one of our manufacturing sector clients move from an $8m to $18m turnover business, with the transition to a new management structure and clear succession of key management and the owner. This business has since doubled that size, and with a great General Manager and team in place, continues to provide its owner a very healthy income in retirement.
Succession planning can take many pathways and raise many different issues and this business was no different.
The issues were weighing so heavily on the owner, he had begun to doubt he could ever retire and extract the value that his family had spent three generations building.
Working closely with him, we created a business plan to identify key strategies to revitalise the business and introduce succession preparedness activities, like management team structures and formalisation of processes. Mentoring of key management staff commenced. Operations were reviewed and rationalised, and transition plans implemented. Human resource processes and an accountability structure was set in motion.
A future for the business was mapped out, with career paths for younger members of the team and exit strategies for the older members of the team. A Customer Relationship Management and sales management process were also established, and key management roles were transitioned.
3 years into the plan, the owner/Chief Executive Officer was in a position to semi-retire.
The final year of our succession planning saw a marketing program enacted, to grow attractive markets and position the company as the leading Australian manufacturer in those sectors.
A much larger and more profitable business was created, and Gibsons are still relied on to this day by the owner, to ensure the business remains on track with growth and success into the future. Placing Gibsons in this kind of role can bridge the gap between business owner vision and new management, allowing them to retire with peace of mind.