1. Do I sell my business to fund my retirement? Succession Challenges for family businesses and business families

2. Vision Statement As baby boomer family business owners need financial stability in their retirement they must get full price for their business. The challenge for family business succession is can Generation X&Y afford this price?

3. Goal and Objective How can we achieve generational equity? Generation X&Y cannot afford the health care costs of the baby boomers in retirement, let alone their income support.

4. Today’s Situation Babyboomer business owners need full value for the business. Funding retirement trumps giving the next generation a free ride.

5. Todays problem… The business may not be saleable The business may not be optimised for sale

6. Todays key risks Your business will only be worth what someone else will pay for it. Not selling your business may limit your retirement options.

7. Coping with parental guilt You may have been successful Are you responsible for your children’s success?

8. The parental challenge Is funding your childrens success a real risk to your comfort in retirement? Can you afford for your retirment to depend on your children’s business success?

9. How Did We Get Here? Many family businesses are too small to pay more than a modest salary to their proprietors. Handing the business on may generate an income stream for multiple generations and family members. This limits the capital value for retirement

10. Available Options 1 Sell the business on the open market Sell the business to the family at full market value

11. Available options 2 Hand the business on and hope that family values have enough weight to look after the senior generation Do a trans-generational deal with your children and grandchildren. Share the risk and rewards of sustaining your family.

12. Recommendation For most businesses, selling on the open market to a stranger will produce the best result. Sell back into the family only where there is strong family support of the family business and a safe and appropriate financial return for the retiring generation.