There is a long way to go. An enormously busy schedule and countless responsibilities. All reasons to postpone the thought of succession or selling the administrative office.
'Those are matters for later, I'm still doing business now.' But is that wise? In practice, it is not and you can't actually start early enough to work out a strategy for the future.
Selling the office or looking for a suitable successor is not only a very time-consuming process, but also a difficult one. Besides the fact that it involves years of work that day in and day out determines the life of you as an entrepreneur, it is also difficult to get a good understanding of the various options. You sometimes can't see the forest for the trees.
1. Waarde of office is in preparation
The highest valuation for an office is rarely achieved with a quick sale. Office valuations rise when there is time to optimize processes, reduce dependence on the owner and put administration in order. By starting on time, you have room to make these improvements.
2. Labor market is changing rapidly
There is a growing shortage of finance staff and successors. Administrative offices that wait with their succession strategy run the risk of not finding anyone to take over. Those who orient themselves now increase their chances of finding a suitable successor or acquisition structure.
3. Employees and customers deserve clarity
A transfer that is prepared too late often leads to unrest among employees and clients. By communicating plans in a timely manner, the office creates calm and confidence. In addition, you increase the chances that good employees will stay and clients will remain loyal to the office.
4. Changing personal goals
You may not be thinking about quitting now, but life changes. Health, family situation or new ambitions can affect future plans sooner than expected. If a plan is already in place, you avoid having to act under pressure.
There are more options
Succession does not necessarily mean handing over the keys tomorrow. There are several routes you can take. There are numerous options when it comes to selling the office. But what does this mean for the office, employees and clients?
Selling to another office in the region
As the owner of a local administrative office, you may already have a good understanding of your competitors in the area. One possibility is to opt for a so-called "portfolio" takeover. Often quickly arranged and close by, but in doing so you will in many cases surrender the identity of the office. There is also a chance that a number of things will change structurally for employees and clients, which can cause resistance.
Sell to current employee
Perhaps you currently have an employee in the office who is suitable as a successor? A talented, entrepreneurial employee with ambition. In practice, however, financing for these employees is often complicated.
Management buy-in
Many offices do not have a successor among their own employees. Another possibility is to sell to an outside person. The tricky part, of course, is that you as the owner must get to know the person before you immediately entrust your office. There are all kinds of ways to screen someone beforehand, such as an extensive assessment or personality test. But in the end, it all comes down to trust.
In addition, the person does not yet know the office. So again, a good transfer requires a lot of time. Employees may also find changes difficult, causing resistance.
Private equity
Investors step into this type of organization with the goal of growing the firm and later selling it at a profit. This often provides capital and strategic clout, but also requires a willingness to move with investor goals. So this can involve big changes, such as the name, identity or culture of the firm.
Connect to the network
As an office, it is also possible to maintain one's own identity, continue doing business yourself but also safeguard the future of the office. An example of this is the BANVO network. This model offers room for growth and supports in arranging the succession of the office when the owner actually wants to stop doing business.
In addition, nothing will change in terms of daily activities, management or work processes, only that the office is now part of a network of several independent administrative offices throughout the country. So you benefit from economies of scale and can grow fully, while the office can remain itself.
Thinking about succession is not a sign of stopping, but of good entrepreneurship. By orienting and planning now, you keep yourself in control. Want to know which route best suits your situation? There are smart solutions available that you can explore today.
