Creating The Right Team
A potential buyer will be particularly interested in your second tier management team and their ability to carry out their roles and responsibilities once you are out of the business.
Creating the right team is key as the buyer will be especially interested in their ability and desire to make your Growth Plan happen, as this is the key to your successful enhanced sale value.
You as the owner need to have successfully delegated day to day responsibilities to your management team, with robust reporting in place.
Training programmes, external and internal courses, mentoring and coaching should all be considered and in place for this key team, alongside the more traditional appraisals and performance reviews for all to see.
Secondly, you may need to consider how you want to incentivise this team to hit your Growth Plan as part of your preparation for sale, to ensure you achieve those all important numbers which your buyer will find so attractive.
Incentives can take many forms, from commissions to profit shares and with your sights firmly fixed on achieving growth to sell, you need to consider all ways to achieve your numbers.
A more formal incentivisation can be considered in the form of Enterprise Management Incentive (EMI) and share incentive schemes, where the company provides a tax efficient way for the key team to buy in on achieving specified performance criteria from your Growth Plan.
This scheme has many advantages to you the owner and to your key employees and we will be delighted to explain this further as part of your preparation for sale process.
As part of team and team structure considerations, a potential buyer will be keen to see:
- Clear lines of reporting
- Full regulatory compliance and responsibility for this vital area
- Full set of processes and procedures for each aspect of your business – you may wish to consider one of the ISO accreditation’s as part of your sale preparation to help with this
At Moulds & Co Accountants we are here to help with all aspects of creating the right team and getting them ready for when you sell the business. Having worked with owner managed businesses over the last 20 years we understand the importance of getting the right team in place and the challenges this brings and we are ready to share these insights with you.
Contact us to get started or alternatively, request a call back.
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