Succession Planning

For most business owners their business is their biggest asset, yet realizing that value at the desired time can be an extremely complex and difficult process. Succession Capital specializes in this field, employing a wide range of financial, negotiation, deal-making, capital raising and legal skills to provide a comprehensive package for its clients.

Succession Capital employs a disciplined and structured approach to maximizing value for its clients. The process commences with Succession Capital gaining an understanding of the business and the desired outcomes of the business owner. In most cases, businesses are not actually sale-ready, so Succession Capital will start with that process, the outcome being a properly presented and saleable asset.

Succession Capital then employs its substantial network and understanding of the business to identify a shortlist of appropriate buyers. These can span the range of suppliers, customers, competitors, private equity firms and BEE firms. In many scenarios, but most especially those where a competitor is the most suitable acquirer, negotiations can become adversarial and revert to positional bargaining formats. Succession Capital plays a key role here as a more independent party, utilizing its extensive negotiation experience to attain a superior outcome.

Concluding a deal is obviously the key milestone, but many transactions fail in the implementation. Succession Capital remains very hands-on throughout this part of the transaction, assisting the acquirers 

with capital raising, be it debt or equity, to ensure that the transaction is appropriately and adequately funded.

Further, Succession Capital will manage and oversee the entire set of legal documentation required to finalise the transaction. By so doing, many possible pitfalls and previously unforeseen issues can be avoided.

Succession Capital provides an end-to-end professional and client-centric service to business owners, enabling them to get the most out of what they have built up over time. Where all of these inputs are not required, Succession Capital can offer a more modular service, whereby clients can choose which particular facets of the offering they need most.

Plan for tomorrow today, with Succession Capital as your partner.

When should I start planning for my exit / retirement?

It is never too soon to start planning. There is no such thing as wasted time or effort in ensuring that the process is smooth, beneficial and timeous for the right opportunity to present itself.

What if I don’t know how to sell my business?

Succession Capital specializes in getting businesses sale-ready, and finding the appropriate transaction and funding structures for you.

Who do I sell to?

Succession Capital works with you every step of the way, identifying and pre-screening buyers to avoid wasted time, and to ensure the best outcome for you.

Why should I worry about succession planning now? I am not yet ready to retire.

The sooner you start thinking about your exit, and planning for it, the better the outcome will be. Buyers have longer to get ready for take-over, staff are better prepared, and funders are more prepared to provide capital where the process is smooth and well thought-through.

What if I don’t want to think about exiting, I am happy to keep working?

Starting to get ready for an exit doesn’t mean you’re checking out right away. Businesses can be prepared for sale, and also sold in tranches. You may be amazed at what an energy and idea injection from a newly incentivized shareholder can do for the business, allowing you to share in those rewards.

Will I have to bring in a BEE shareholder?

That is entirely dependent of the nature of the business and the industry in which it operates. In many instances, the introduction on a BEE shareholder may benefit the business going forward. Succession Capital will assist right the way through that process too.

What if I value my business at more than the market does?

That is often the case. Succession Capital will work with you to ensure that the fair value of the business is put forward to potential buyers, and negotiate on your behalf to try to achieve that.

How much will it cost me to use Succession Capital’s services?

Fees are modular and vary with the nature, size and complexity of the business. There is no charge for the initial meeting, where you and Succession Capital have an exploratory discussion to determine how best to go forward together.

ross[at]successioncapital.co.za

0828987544

2nd Floor, 4 Anslow Lane, Bryanston

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