Retiring from the business you own
You run a successful business, it’s got good staff and makes a bit of money. But you’ve got one eye on the day you can retire. You want to see a bit more of the world, or spend a bit more time with the grandchildren.By Paul Bailey, founder, Master Objective.
What happens to your business? Of course the dream scenario is that a rich and generous investor calls you with his chequebook open and wants to know your price. If that’s you, and the price is right, then go for it!Unfortunately, in many cases that phone call never materialises. So what then are your options?
You could break up your company and sell off the assets. If that covers any debt you have then great. But what about your loyal and hard-working staff? That leaves them without employment, and you don’t want that as your legacy.You could leave it to the next generation of your family. But are they interested? (And, between you and me, are they capable?) Only about 10 per cent of businesses manage this successfully.
You could simply work until the day you drop. But I think you deserve to reap the rewards of your decades of hard work. So what can you do?This situation is known in the industry as “transfer failure”. But there is an option. Through my business, MasterObjective, we take businesses just like these and we use our vast experience and specialist skills to implement plans for growth.
We take on the debts, the secured loans, the personal guarantees and the burden of the business. You’re free from all ties, free to book that cruise or go visit the family. The day you can retire is here.Unlike other investors who purchase with the intention of relocating to their own premises or selling off the parts, MasterObjective actually builds businesses with the goal of developing staff and improving performance. This typically involves investment, training, and recruitment where required, as well as developing product ranges and targeting new markets. If you have an underperforming business, or you’re not sure how to retire, we’d love to hear from you.