Can you sell your business when you retire?
This Question should occupy the minds of business owners nationwide.
Whether you’re approaching the time when you choose to sell or not, your business should be as sale ready as possible. After all, a readily saleable business is operating at top level and you just don’t know what may change in your personal circumstances at any time.
To be readily saleable your business shouldn’t rely upon you or any specialist skill or knowledge you have.
So, how do you get your business independent of you?
- Train employees in every aspect of your business.
- Then keep them by providing excellent working conditions and prospects for promotion and ownership
- Document all the aspects of your business in a practical “how to do” format so new owners and employees have easily accessible notes on what to do.
- Ensure you have a well thought out advertising plan including prepared plans for “boost the activity” promotions for quiet times. An advertising plan isn’t difficult to prepare. Just start by grabbing an annual wall planner and put in the activities then put the individual promotions and activities together in detail. The wall planner allows you to identify gaps in your programme.
- Continually challenge whether you need to be doing the things you do in the business. Delegate the things you can and make sure you can hand over the things you do to a new owner operator or manager.
Documenting the processes in a business has long been promoted as increasing the business value but is often dismissed as being too hard to achieve and keep up to date.
This is now not so, with excellent software on the market to effectively document and update the information. Your accountant can provide you with contacts for good software providers and help you get started. There are examples of businesses doubling good levels of profit by committing to documenting their systems. And of course this improves the saleability of the business and its value.
We recommend that you don’t place reliance on one particular buyer for your business. That loyal employee may just not have the money or may have a change of plans. Think in terms of sale to unrelated people looking for owner operator opportunities, or professional investors, your competitors or large corporates. By considering each of these options you’ll open your mind to what you need to do to ready your business for sale.
Your accountant has access to Thai Trading statistics as well as recent Thai business sales statistics and their relationship to financial results.
Through this they can help you to:
- Compare your business to your competitors.
- Establish a likely sale price.
- Help you put a plan in place to maximize your financial results, the value and saleability of your business.
RSM News – 2007 to 2008
Many of our readers have enquired as to what developments have occurred with respect to RSM internationally as well as domestically. In the past, this information was communicated to readers via this newsletter whilst in recent times this newsletter has concentrated more on technical updates only. Accordingly below is a summary of RSM developments from 2007 until today.
RSM has seen its international network grow with the addition of Bentley Jennison in the UK replacing RSM Robson Rhodes.
Recent developments in Asia include the introduction of Zhongrui Yuehua Certified Public Accountants, the largest Chinese Network outside the Big “4”, to RSM international. With headquarters in Beijing, RSM’s new Chinese firm has 19 offices across China and 2,600 staff.
RSM International is in the process of introducing new network firms in both Germany and Japan and this should occur during the next couple of months.
RSM Wealth Management
Following 4 years with RSM’s Wealth Management and Insurance Advisory Division, Mr. Barry Scaife, the Division Head has joined some of the Thai Industry’s Insurance and Assurance stalwarts which include Steve Bell, Khun Rojchai Suksawasdi and Khun Napaporn Aksornnaowarat at InsurExcellence, a newly formed venture which includes Mr. Bill Heineke as one of its main backers.
“RSM Thailand is heavily indebted to Barry Scaife and wishes him and InsurExcellence all the best with his and their future,“ said Gareth Hughes, Managing Director, RSM Thailand.
Management Buyout and Name Change
Following the Management buyout of the RSM firm in Thailand from the previous owners RSM Nelson Wheeler in Hong Kong its RSM Thailand’s three core firms have changed their names dropping the Nelson Wheeler tags and calling themselves.
- RSM Advisory (Thailand) Limited
- RSM Audit Services (Thailand) Limited
- RSM Recruitment (Thailand) Limited
Alliance with MBMG International Group
Following the departure of Barry Scaife, and the more stringent requirements of Sarbannes-Oxley in addition to the need to avoid conflict situations, RSM has taken the view that it will not participate directly in Wealth Management and insurance advisory services any longer.
Notwithstanding this, RSM is delighted to announce the news that it has entered into and Alliance with MBMG International with respect to these services and should any RSM Clients require assistance in these areas, RSM will be happy to introduce them to an MBMG International Consultant. Following this newsletter is a press release regarding the launch of this new alliance.