In this podcast, we’ll learn about:

• What kinds of events can trigger a workplace investigation
• The rules of procedural fairness
• The potential outcomes that can arise from an investigation

If you would like some practical legal advice for your business, you are very welcome to contact the Mills Oakley private advisory team for a confidential discussion.

Grevis Beard:
Workplace Investigations | Business Podcast & Law Podcast

In this podcast, we’ll learn about:

• The 12 dysfunctions of business teams
• The potential issues with nepotism
• Identifying pressing issues within your team

If you would like some practical legal advice for your business, you are very welcome to contact the Mills Oakley private advisory team for a confidential discussion.

Grevis Beard:
Fix Your Team | Business Podcast & Law Podcast

In this podcast, we’ll learn about:

• Cooling-off periods
• Nomination
• Purchasing property through Self-managed Super Funds

If you would like some practical legal advice for your business, you are very welcome to contact the Mills Oakley private advisory team for a confidential discussion.

Anthony Brearley:
Property Law | Business Podcast & Law Podcast

Throughout the podcast, we’ll learn about:

• The danger of ‘Summit Fever’
• Learning to accept early failures
• Recognising detrimental business ideas

If you would like some practical legal advice for your business, you are very welcome to contact the Mills Oakley private advisory team for a confidential discussion.

George Hillary:
Mountaineering a Business | Business Podcast & Law Podcast

John joins me to explain how the idea works and why he and his brother have purposely limited the growth of their business in the short term.

Throughout the podcast, we’ll learn:

• The value of nature in guiding our thinking
• How nature can help with team building
• How to manage business growth

If you would like some practical legal advice for your business, you are very welcome to contact the Mills Oakley private advisory team for a confidential discussion.

John Kugel:
Gone Bush Adventures | Business Podcast & Law Podcast

Michael enlightens us with his in-depth knowledge of the subject including:

• The benefits of having a shareholder agreement
• What ‘compulsory mediation’ is
• The importance of exit mechanisms

Michael also introduces us to his exciting new AI start-up, ContractProbe, which he claims will “Kill the billable hour dead.”

If you would like some practical legal advice for your business, you are very welcome to contact the Mills Oakley private advisory team for a confidential discussion.

Michael Pattison:
Shareholder Agreements | Business Podcast & Law Podcast

Chris teaches us more than a few things that we can use in our own businesses including:

• How big business disciplines can be applied to small business
• The importance of interpersonal relationships in business
• How to recruit qualified candidates for your business

If you would like some practical legal advice for your business, you are very welcome to contact the Mills Oakley private advisory team for a confidential discussion.

Chris Yena:
Lessons from big business | Business Podcast & Law Podcast

An author and highly sought after speaker, Julie empowers audiences with practical, game-changing success strategies that challenge what you thought you knew about leadership.

In this episode, Julie is challenging our definition of the word ‘busy.’ She’s shedding a light on what many people use as an excuse in their everyday lives. And she’s using a rather clever analogy of dancefloors and balconies to do so. We’ll learn:

• Why we need to change our definition of busy
• Why being busy can be detrimental to your business
• Steps you can take towards more productivity

If you would like some practical legal advice, contact the Mills Oakley private advisory team for a confidential discussion.

Julie Hyde:
Busy? | Business Podcast & Law Podcast

We’re pulling back the veil to uncover all the mysteries behind social media and learn:

• How it can be used to help grow your business
• Which platform is best for your business
• We even find out what an ‘Instagram Story’ is.

If you would like some practical legal advice for your business, you are very welcome to contact the Mills Oakley private advisory team for a confidential discussion.

Finlay Sturzaker:
Social Media For Business | Business Podcast & Law Podcast

I ask Geoff to break down all the important factors that business owners may overlook when thinking about the sale of their own business, including the rather ominous sounding Baby Boomer business exit Tsunami. We also find out:

• When the time is right to sell your business
• The questions you need to ask before you sell
• Macro-economic factors that could affect the sale of your business

If you are thinking about selling your business and would like some practical legal advice, contact the Mills Oakley private advisory team for a confidential discussion.

Geoff Green:
The Smart Business Exit | Business Podcast & Law Podcast

I pick Robbie’s brain and get to the gooey-nougat that is the entrepreneurial mindset, where we discover:

• Seizing opportunities in the market
• Marketing a brand successfully
• How to launch a brand using social media

If you are thinking about starting up your own business and would like some practical legal advice, you are very welcome to contact the Mills Oakley private advisory team for a confidential discussion.

Robbie Ball:
Uncle Jack Watches | Business Podcast & Law Podcast

I often find that the first question that many business owners ask when looking to exit their business is “How much can I get for it?” The first question you should really ask however, as Ross explains, is “What am I going to sell?”

In this episode, we dive further into this question and learn:

• How to approach the sale of your business
• Small business concessions
• The tax opportunities that exist when selling your business

If you would like some further information about any aspect of this topic, you are very welcome to contact either myself or Ross for a confidential discussion.

Season 8 Episode 4: Tax consequences and opportunities of selling your business | Business Podcast & Law Podcast

Season 8 Episode 3: Death, Divorce and protecting your assets | Business Podcast & Law Podcast

Whilst it can get technical at times, I find this a fascinating subject for business owners. The imperative to build assets outside your business is a pet subject of ours here at the Business Owners Podcast, and as Ross explains, superannuation can be a fantastic vehicle through which to do this.

Whilst you may all be familiar with the favourable tax treatment of superannuation, in this episode you will also find out:

• How superannuation can be a core plank of your asset protection strategy
• How to discharge your duties as the trustee of a self-managed superannuation fund
• What are in-house assets and how to avoid them!

If you would like some further information about any aspect of superannuation for business owners, you are very welcome to contact either myself or Ross for a confidential discussion.

Season 8 Episode 2: Superannuation for business owners | Business Podcast & Law Podcast

Kicking off our first episode, we talk about how to protect your family home from creditors and other claims. Conventional wisdom says that you need to hold your family home in your personal name, in order to avail yourself of the “own residence” CGT exemption. However, for business owners this poses a conundrum, as of course you may then expose this valuable assets to claims which are made against you.

Ross offers some useful practical guidance for business owners in this position, and also discusses various other aspects of the “own residence” exemption which will likely surprise you!

Season 8 Episode 1: Is your family home at risk? | Business Podcast & Law Podcast

In our final episode of this season about disruption and innovation, Steve Glaveski and Simon Quirk reveal some of the common mistakes that investors make and how you can avoid them.

Season 7 Episode 4: Common mistakes when investing in a start-up and how to avoid them | Business Podcast & Law Podcast

But don’t worry, this isn’t a technical discussion about legal processes!  Instead, we focus on the proven strategy of established businesses not engaging in disruptive innovation for themselves, but rather to invest in innovative businesses outside the four walls of their successful, traditional business.
As we have heard in earlier episodes, it can be particularly challenging or even impossible for the owners of established and successful businesses to innovate.  This is because it often entails cannibalising or re-thinking the very things that made them successful in the first place! 

We set up our own “legal tech” accelerator about a year ago and have certainly reaped the rewards, both in terms of new exciting technology that we now deploy in our business, but also in the sense that we are now known as an innovative and forward-looking law firm. 

Is an accelerator something that you should consider for your business? Listen to this episode to find out more!

Season 7 Episode 3: Is an accelerator something your business should consider? | Business Podcast & Law Podcast

So how do you prepare your business to survive and thrive?

In our latest episode, our panel of leading experts on disruption and innovation – Steve Glaveski and Simon Quirk – talk about some simple initial steps you can take in your own business to embrace this change and ensure you are best placed to succeed going forwards, remembering:

1. It’s not about completely changing your business model – just think about reviewing and adapting your current plan, and making incremental changes.
2. Allocate resources to doing things differently – think about an external innovation program or partner with other organisations that specialise in this area.
3. Take small steps to learn fast!

In this episode, we explore some examples of how other businesses have succeeded by following these steps.

Season 7 Episode 2: How to adapt your business model for a disruptive market | Business Podcast & Law Podcast

It is easy for business owners to become stuck in their old business models – models which may have brought them success in the past, but are not equipped to sustain growth and success in this emerging new landscape. Rapid technological developments mean more and more functions are becoming automated, not just blue collar work, but also roles that actually require human effort and creativity are progressively being affected.

And there is no getting around it. Planning for success in the future will look radically different to the plans we have in place now; the key is to embrace this change and become adaptable within your industry, which is what this season of the Business Owners Podcast seeks to address.

In our first episode I am joined by a panel of Australia’s leading experts on disruption and innovation, Steve Glaveski and Simon Quirk. Steve is the co-founder of Collective Campus which is an organisation that exists to help mature businesses with innovation. Simon is the founder of a number of start-up businesses, including Strategy Fusion and VidVersity, and is also a strategy consultant.

In this episode of the podcast, we discuss what’s happening, and how to leverage the change for competitive advantage.

Season 7 Episode 1: Secrets to effective disruption and innovation success | Business Podcast & Law Podcast

In the latest episode of the Business Owners Podcast, we are joined again by estate planning specialist Troy Palmer, who emphasises the importance of looking closely at the constituent documents and rules for your fund, whether it’s a retail fund or a self-managed super fund, to determine what the terms will allow you to do.

Troy highlights possible options for ensuring your fund passes to your intended recipient or ‘nominee’ and discusses strategies for limiting challenges to your fund and achieving a tax efficient outcome.

Estate Planning
Episode 3: Are your superannuation and business assets at risk? | Business Podcast & Law Podcast

In the latest episode of the Business Owners Podcast, we are joined again by estate planning specialist Troy Palmer, who emphasises the importance of determining which of your assets are estate assets (those in your own name), and which are not – which may include assets held in trust.

Troy highlights that the distinction will provide important clarity on what you may legally bequeath on your passing, and discusses strategies you may wish to implement to reduce the likelihood of estate challenges being made.

Estate Planning
Episode 2: Are your asset protection structures compatible with your estate plan? | Business Podcast & Law Podcast

In our latest season of the podcast, I’m joined by colleague and estate planning guru Troy Palmer to discuss wills and estate planning specifically for business owners.

Troy looks at the importance of a comprehensive will to ensure both your business and beneficiaries are protected, and highlights some simple measures you can take to achieve a desirable outcome.

Estate Planning
Episode 1: Asset Protection – Where there’s a will, there’s a way! | Business Podcast & Law Podcast

1. Are you suited to the systematised nature of a franchised business?
2. Can you see yourself being involved in the day-to-day operations of this franchise – is it a product or service you are passionate and excited about?
3. Have you got advice on your franchising agreement?
4. What payments and expenses will you need to make during the lifetime of your agreement?
5. What restraints will be imposed on you once the agreement ends?

*Please note that any strategies discussed by Martin and the franchising panel are general in nature and do not take into consideration any of your personal circumstances. You must seek individually tailored advice to ensure you properly address any issues you may have around your business.

It’s All About Franchising, Systems & Procedures
Episode 4: To franchise, or not to franchise – that is the question. | Business Podcast & Law Podcast

Of course, the answer should be yes; after all, you’ve been working in the business for years – unquestionably you understand how it operates, and what your business systems are. However, on closer inspection, many systems are intrinsically linked to the business owner themselves, and are usually not well documented enough to translate into a third party successfully taking ownership. As such, the dependency on you, as the business owner, can have a serious impact on both business growth and sale value.

In Episode 3 of the Business Owners Podcast, we discuss the best ways to build and refine your policies and procedures to liberate you from the daily grind, and create a valuable and saleable business.

*Please note that any strategies discussed by Martin and the franchising panel are general in nature and do not take into consideration any of your personal circumstances. You must seek individually tailored advice to ensure you properly address any issues you may have around your business.

It’s All About Franchising, Systems & Procedures
Episode 3: It’s time for a Business Health Check | Business Podcast & Law Podcast

In Episode 2 of The Business Owners Podcast, we discuss these types of branding issues with our panel of franchising experts, and look at strategies to grow and protect your brand from both a PR and legal perspective.

*Please note that any strategies discussed by Martin and the franchising panel are general in nature and do not take into consideration any of your personal circumstances. You must seek individually tailored advice to ensure you properly address any issues you may have around your business.

It’s All About Franchising, Systems & Procedures
Episode 2: How To Grow And Protect Your Brand | Business Podcast & Law Podcast

In the first episode of this season of The Business Owners Podcast, I am joined by a panel of franchising experts to address the key question – should I franchise my business?

*Please note that any strategies discussed by Martin and the franchising panel are general in nature and do not take into consideration any of your personal circumstances. You must seek individually tailored advice to ensure you properly address any issues you may have around your business.

It’s All About Franchising, Systems & Procedures
Episode 1: Should I Franchise My Business? | Business Podcast & Law Podcast

In this episode, Ariel discusses what it means for a business to be insolvent, and provides tips for creditors of a business which is insolvent. She provides insights on:

• The cash flow test to determine whether or not a business is insolvent
• Pre-planning protection strategies for directors to avoid being personally liable
• The importance of registering your security interests to ensure you are a priority creditor

*Please note that any strategies discussed by Martin and Ariel are general in nature and do not take into consideration any of your personal circumstances. You must seek individually tailored advice to ensure you properly address any issues you may have around your business.

Legal Issues for Business Owners
Episode 4: Solvent versus insolvent – Risks for you as a business owner and as a creditor | Business Podcast & Law Podcast

Unfortunately we see all too often a significant breakdown in the relationship between partners or shareholders of a business. This can cause a business which is thriving to come to a grinding halt.

In this episode, James discusses the tensions, which may lead to a shareholder dispute. His philosophy is that prevention is better than cure.  As such, James provides some insights into how businesses can minimise the destructive effect that a shareholders dispute can have on a business.  James explains:

• what a shareholders agreement is and the importance of having one;
• the differences between a constitution and a shareholders agreement; and
• the benefits of making concessions to achieve a negotiated outcome if things go wrong.

*Please note that any strategies discussed by Martin and James are general in nature and do not take into consideration any of your personal circumstances. You must seek individually tailored advice to ensure you properly address any issues you may have around your business.

Legal Issues for Business Owners
Episode 3: Prevention is better than cure – What happens when shareholders disagree? | Business Podcast & Law Podcast

Employees are an essential element of doing business, and it is therefore vital to ensure that when it comes to your staff you are getting things right. In doing so, you not only ensure a harmonious and productive work environment, but also minimise potential issues in relation to employee exits, terminations, and future business sales.

Selling your business can be a daunting experience, particularly when a potential new investor wants assurances that your employees will continue to work in the business after they have taken over the reins. In this episode, Lisa provides some tips on how to ensure your employees are locked in before you begin discussions about selling your business, and provides insights on:

• Contractor versus employee relationships
• The importance of current signed contracts for employees
• The best way to minimise the risk of an unfair dismissal claim
• The best way of dealing with trade unions

These tips could mean the difference between a bumpy or smooth journey towards selling your business – and gaining bespoke advice will ensure you are in the best possible position to secure your desired outcome.

*Please note that any strategies discussed by Martin and Lisa are general in nature and do not take into consideration any of your personal circumstances. You must seek individually tailored advice to ensure you properly address any issues you may have around your business.

Legal Issues for Business Owners
Episode 2: Selling your business – Are your employees secure? | Business Podcast & Law Podcast

What Business Owners need is a broad range of legal advice and skills. These may well include the succession planning, transactional, and corporate law knowledge that I bring to the table, but also tax, family law, employment law, and litigation expertise.

Ultimately, they need to get the right advisory team around them to ensure they are in the best possible position to succeed. As such, I wanted to give you a flavour of what that might look like in Season 4 of the Business Owners Podcast by bringing together my colleagues at Mills Oakley to get their top tips for Business Owners in their respective disciplines.

To kick the season off, I am joined by Helen Suke, one of the top Family Lawyers in the industry.

We all know litigating is hard, and when this happens in a family law context this can be particularly taxing – both financially and emotionally. In this episode, Helen talks about the importance of forward planning, and the fact that the Family Court has enormous overarching power to overcome or reverse certain transactions and expose assets – meaning your business may not be as protected as you thought it was.

In addressing these issues, Helen discusses what you can do to ensure your agreements are as robust as possible, and gives some sage advice to co-owned businesses and how to protect your business when your business partners’ marriage breaks down.

*Please note that any strategies discussed by Martin and Helen are general in nature and do not take into consideration any of your personal circumstances. You must seek individually tailored advice to ensure you properly address any issues you may have around your business.

Legal Issues for Business Owners
Episode 1: The power of the Family Court – Is your business really protected? | Business Podcast & Law Podcast

Personal human issues can soon bleed into financial and business outcomes, which is not good news for anyone. Resultantly, there is more legal work managing litigation and disputes in these businesses than there is in setting the right foundations in the first place – and a lot more stress and cost too!

But the old adage is true: prevention is better than cure.

There are a number of factors that can cause tension between business partners, including perceived in-equality of contribution, funding or differing expectations or opinions on the future of the business – all of which can negatively impact the operation of the business and those in it. Ensuring the right mechanisms are in place early, including clarity around expectations and goals before entering into a relationship, can reduce the risk of conflict and lead to a more functional and profitable business.

Therese Barry, Strategic Consultant and Psychologist, joins us for the final episode of Season 3, where we look at co-owned businesses; exploring what elements business owners can put in place to help protect their stake in the business, as well as how to navigate and manage the emotional and mental strains of a business break-up or other dispute.

*Please note that any strategies discussed by Martin and Ed are general in nature and do not take into consideration any of your personal circumstances. You must seek individually tailored advice to ensure you properly address any issues you may have around your business.

The Business Owners Mind
Episode 4: Co-owned Businesses, are you protected? | Business Podcast & Law Podcast

But if you are counting on an intergenerational transfer, have you ever actually stopped to assess what the next generation might be thinking? Have you discussed their understanding of the business, and their concerns, expectations, and desires for the future?

All family businesses have their own unique system, and although all members of the family are connected, they are all individuals in their own right. As such, each family system needs to be understood in its own way to work out what particular issues need to be addressed in each succession.

In this episode we are joined once again by Therese Barry, Strategic Consultant and Psychologist, who discusses intergenerational succession from the perspective of the next generation; looking at common issues in family owned businesses such as:

• Does the current generation ever really think the next generation are ready to take over the family business?
• How does the next generation say no if they don’t want to take over the business?
• How do children open the lines of communication with their parents about their feelings towards working long hours with little reward – are the children earning comparable market salaries for their time and commitment to the business, or is their commitment an expectation based on the familial relationship?

In addressing these concerns, Therese discusses the importance of understanding your own family system, being respectful of each other’s needs, and having sufficient management structures in place – to ensure everyone is comfortable with the outcome, and a successful transition can be achieved for everyone involved.

*Please note that any strategies discussed by Martin and Ed are general in nature and do not take into consideration any of your personal circumstances. You must seek individually tailored advice to ensure you properly address any issues you may have around your business.

The Business Owners Mind
Episode 3: Intergenerational succession from the perspective of the next generation | Business Podcast & Law Podcast

With so many business owners in this category looking to exit over the next 10-20 years, it is important to determine how you will do so. We all know intellectually that the way to maximise value is to prepare really well, develop a plan, execute that plan, have something wonderful to move on to and keep that plan rolling through to completion.

Sounds simple, right?

As consultants and lawyers, we understand this process all too well, and have extensive experience working with business owners to build their plans; ensuring they are executed to achieve the desired results for all involved. However, what many lawyers often overlook is that sometimes the cycle of change can be difficult for business owners, and there are a lot of human aspects to take in to account. As an owner, you have worked in this role for a number of years, seen the business grow and evolve, and no doubt feel a sense of attachment that is hard to shake; particularly if you are unsure of whether to let go, and who to appoint as your successor. Additionally, in looking at who to transition to, there can be a lot of complex circumstances to navigate, particularly when looking at family businesses.

In this episode of the Business Owners Podcast, we are joined once again by Therese Barry, Strategic Consultant and Psychologist, who discusses the human impact of business exits and transitions – particularly when it comes to family business succession. Therese looks at the common mistakes parents often make when looking at transitioning their business to the next generation, and how to overcome potential roadblocks to this process.

*Please note that any strategies discussed by Martin and Ed are general in nature and do not take into consideration any of your personal circumstances. You must seek individually tailored advice to ensure you properly address any issues you may have around your business.

The Business Owners Mind
Episode 2: What to think about when transitioning a family business | Business Podcast & Law Podcast

In the new season of The Business Owners Podcast, we are joined by Therese Barry, strategic consultant and psychologist, to address these human impacts of doing business.

Therese has worked with many Business Owners and Senior Executives around the stressors of running a business, as well as the broader interpersonal issues – such as family, relationships and children – and highlights that sometimes, in order to achieve the best and most informed legal or business outcome, you must first understand the complex people problems within your family or business.

Therese discusses how we can use the skills and knowledge that come with psychological training in a constructive and positive environment to achieve these great business outcomes. Episode 1 sees her deliver solutions to reduce common stressors for business owners, and delve into the human aspects of a workplace scenario around the transition of the business from owner to successor.

And remember, there is truth in the old proverb that two heads are better than one!

*Please note that any strategies discussed by Martin and Ed are general in nature and do not take into consideration any of your personal circumstances. You must seek individually tailored advice to ensure you properly address any issues you may have around your business.

The Business Owners Mind
Episode 1: The human impacts of managing, protecting, and exiting your business | Business Podcast & Law Podcast

What is a certified exit planner?

As Greg puts it, certified exit planners bring with them a specialist set of skills and knowledge that allows them to help business owners stop and look at their business as a valuable asset, to maximise the value that they can get from that asset and create an exit that is designed to meet both their personal, business and financial needs. Part of this skill set is bringing together the right professional advisors in a way that is actually logical, that is mindful of their time and which gets the best outcome for the owners knowing the owner has got really clear goals about what they are trying to achieve.

Locking in senior management as a pre-cursor to your exit

We’ve discussed in previous episodes the importance of retaining key management. This adds value to your business from a buyer’s perspective, as it ensures business can carry on as usual, without disruption. But how do you lock senior management in?

As Greg notes, there are a number of ways and it can often depend on what sort of exit strategy you have in mind – which is why it always pays to think about your strategy early on.

Offering your top employees equity in the business can be a good way to secure their long term service. It also has the added benefit of ensuring greater employee buy in to the success of the business. When employees own part of the business, even a very small part, it often affects the way they view the business and their position. However this approach raises issues of whether you gift employees equity or whether you require them to buy in to the business, even if it is just for a nominal amount. It is important that business owners put the time (and money) into ensuring that any equity arrangement is clearly documented from the outset to avoid problems further down the line.

The upside of locking in senior management in this way can be that it provides clarity in relation to the long term further of the business, both for the current owner and for any prospective purchasers.

How will you exit?

Another great thing about offering senior management equity in your business is that it can pave the way for a management buyout. By periodically offering up equity in the business you are able to effectively transition yourself out of the business.

However a management buyout is just one way which you could exit your business. As Greg notes, it is really important that the owner has thought about which way they actually want to head and what outcomes they are actually looking. Other options include staying on in a relatively passive capacity to provide an ongoing income. Alternatively, you may wish to exit completely via a trade sale, or perhaps you want to transition the business to the next generation in the family.

Whatever you do, TIME IS ESSENTIAL

The one thing which all of these options have in common, is time. Greg’s key piece of advice, and something that he sees all too often, is that business owners simply do not give themselves enough time to execute the strategy that is right for them. By planning early and planning well business owners can maximise their business value and appeal and ultimately ensure an optimal business exit.

If you are interested in finding out, you can contact Greg on 03 8794 7777 or by email at greg@ascendpartners.com.au.

*Please note that Martin and Ed’s business exit strategies are general in nature and do not take into consideration any of your personal circumstances.  Further, Martin and Ed are not financial planners or accounting experts. You must seek individually tailored advice to ensure you properly prepare for your business exit.

Business Exits
Episode 4: How will you exit your business and who is staying on? | Business Podcast & Law Podcast

As one of the most successful management buyin / buyout candidates that Australia has seen over the last decade, Mark has first-hand experience in buying, building and successfully exiting business. He also brings a wealth of experience in dealing with Private Equity. Given this experience, Mark knows all too well the pitfalls and challenges which business owners face in developing and executing a business exit strategy. He offers this advice:

It’s not all about you…

The first two episodes of season 2 touched on the issue of key person dependency, but in this episode we dive deeper! Where a business is entirely or heavily dependent upon its owner, in terms of operations, relationships and/or profit, two significant issues arise when it comes time to exit:

• You might get stuck – once you sell a business, you don’t really want to stay in that business, you likely want to move on; but where the business depends on you, it is likely the purchaser will want to contract you as an employee for a number of years after the sale;
• The price goes down – if the business is dependent on you, then a prospective purchaser is less likely to see value in that business, which translates into a lower sale price.

While similar issues can arise with key management/executive leaders, this is something that can be overcome with careful planning. Talking to key employees early and ensuring that they profit out of the exit transaction ways to keep management personnel on board, not only through the exit but also in the post-exit period.

An advantage of not being central to the day to day operations of the business is that you have time to plan and strategise. Mark says that the first thing he thinks about when he purchases a business is how he is going to exit that business; the time frame, the potential purchaser and the value he needs to build in the business to make it a desirable acquisition. This early planning is essential to realising maximum reward for your hard work.

Private equity – should you get involved?

Having worked closely with private equity (PE), Mark is a keen supporter of partnering with PE to realise the potential of your business. If you go down this track Mark has some golden rules:

• Be frank and upfront – this is the best way to build trust in the relationship.
• Don’t overpromise and under deliver – the one thing PE won’t tolerate is continually failing to meet budgets, KPIs and other expectations.
• Play to your strengths – business owners are generally great at operations and internal relations, while PE has the expertise when it comes to strategy, acquisitions and exits – stick to what you know and exploit the strengths of the other.

When it comes time to exit, however, Mark advises to think carefully as to whether you will maximise value selling to PE. This is because you may, depending on the circumstances, get a better result from a trade sale.

 Get to know your competition

As we’ve drummed into you by now, it’s important to be thinking about your exit from day one; that means you need to be thinking about potential purchasers from day one. All too often your prospective purchasers will be your competitors. They are the ones who will be best able to exploit synergies between the companies and realise the value of your business. If you can establish a relationship with your competitors it gives you more power to be able to manage your exit and maximise your return.

*Please note that Martin and Ed’s business exit strategies are general in nature and do not take into consideration any of your personal circumstances.  Further, Martin and Ed are not financial planners or accounting experts. You must seek individually tailored advice to ensure you properly prepare for your business exit.

Business Exits
Episode 3: One on one with Mark Parow | Business Podcast & Law Podcast

Geoff is a bit different to most consultants, in that he has also lived through his own business exit. As a founder of the Bendigo Stock Exchange, he helped build the company from nothing and successfully exited by way of trade sale to the National Stock Exchange. This experience gives him unique perspective on the business exit process, and provides powerful insight into the planning needed to achieve a successful business exit.

In this episode Geoff raises some uncomfortable truths which business owners must consider if they want to get an optimal result on exit.

When it comes to planning your exit strategy, these ‘truths’ are often the elephant in the room; they are the critical issues that business owners would rather ignore.

For example, it can be difficult to realise, much less admit, that your children don’t want to take over the family business, or that the business you have built from scratch is objectively worth only half of the valuation that is in your head. However, as Geoff points out, business owners need to face up to these uncomfortable truths and address them as early as possible, if they want to maximise their return.

So how do you create value in your business?

Business owners often build up their businesses in an ad hoc manner, relying on processes and structures which work for them at the time. But when they are looking to exit their business, owners need to look at what commercial value the business really has. To assist you in growing value in your business, Geoff discusses:

1. Having growth drivers in your business – elements that a buyer can pick up and exploit to rapidly increase the value of the business.
2. The business should not be dependent on its owner – you need to structure your business so that you are not fundamental to its success going forward.
3. Think like a buyer – build and invest in your business as though you are building it for someone else.

If you are interested in checking out Geoff’s book head to his website at: www.smartbusinessexit.com. The site also houses Geoff’s regular blog and other useful resources such as the “Sellability Score”, a complimentary online questionnaire that helps you gauge the value of your business in less than fifteen minutes.

*Please note that Martin and Ed’s business exit strategies are general in nature and do not take into consideration any of your personal circumstances.  Further, Martin and Ed are not financial planners or accounting experts. You must seek individually tailored advice to ensure you properly prepare for your business exit.

Business Exits
Episode 2:Business exits | Business Podcast & Law Podcast

All too often business owners only start thinking about their exit strategy immediately prior to the sale. But this short sighted approach exposes you to avoidable risk and can mean that you leave a lot of money “on the table”.

In episode 1, Ed speaks with Martin Checketts, author of The Strategic Exit, about his top five issues to make or break a business exit.

 1. A successful exit is planned

You can’t just give a house a lick of paint before you put it on the market. The same can be said when preparing to sell your business. However the process for selling a business is far more complex and should be something that business owners think about from day one – how am I going to successfully exit this business and obtain the best result?

2. Operate your business as a steward for the next owner

Stewardship of a business is all about reinvesting building your business for the long term.

3. Reduce dependence on yourself

Most private businesses have a problem with key person dependency. This causes serious issues when it comes time to exit the business, as the best thing about the business, (you, the owner) is going to walk out the door. This can diminish the value of your business and create headaches for the incoming purchaser. Reducing key person dependency is not something you can fix in a couple of weeks – it takes a long term plan.

4. Timing is everything

When you are looking to exit your business, you must ensure that the timing is within your control. Where the timing is taken away from you, for example due to health issues, things rarely end well. The sellers who get the timing right are the ones that make so much more than the ones that get it wrong.

5. Ensure that your business and life goals are clear and alignedIf you want to know more about successfully exiting your business, get your free online copy of his eBook “The Strategic Exit” here

Business is part of what you do in life – but it isn’t the only thing. Business owners need to be psychologically ready to move on, and that means having something to move on to. To ensure a successful exit, it is essential that business owners consider their personal objectives, those other people that the exit will affect, and what they will do next. Until a business owner is excited about that next step, it can be very hard to move on and complete a successful transaction.

*Please note that Martin and Ed’s business exit strategies are general in nature and do not take into consideration any of your personal circumstances.  Further, Martin and Ed are not financial planners or accounting experts. You must seek individually tailored advice to ensure you properly prepare for your business exit.

Business Exits
Episode 1: Preparing for sale | Business Podcast & Law Podcast

Succession Planning – keeping the business in the family

Last week we talked to our client Wayne and helped him set up a family trust. Wayne is now at the point where he needs to think about who is the best person to control that trust.

This brings us to the nitty gritty of succession planning. We know from experience that no two businesses or business owners are alike. That is why it is so important to take a “deep dive” with each client, to really get to the bottom of what they want and what is most important to them.

For example some business owners, like Wayne, want to keep their business in the family. But this can complicate things and raise further questions like:

• Does the nominated successor actually want to run the business?
• Will there be an appetite for the business to remain in the family past the next generation?

A lot of people make assumptions about how their business will operate once they’re gone, and don’t actually have these crucial discussions with family members.

So in this session we ask Wayne the tough questions!

Binding Death Benefit Nomination forms versus a Trustee controlling your super

We revisit our coffee shop soap opera protagonist, Gino. Last week Gino was diagnosed with a serious illness and needed to consider who would control his family trust and business assets.

In this episode, Gino is worried about what will happen if he were to pass away. We discuss what options Gino has for the distribution of his self-managed super fund (and the commercial property held by the fund), one example being a Binding Death Benefit Nomination form.

A Binding Death Benefit Nomination

form, rule or notice is a document that acts like a ‘Will’ for your super fund. Your super fund won’t necessarily form part of your Estate when you pass away and therefore will need to be dealt with separately. An effective Binding Death Benefit Nomination form will be signed, dated and witnessed and will specify to whom a benefit should be paid and in what manner, for example, to be paid as a pension to your spouse.

Next episode we continue with both Wayne and Gino’s journey, and carry on the conversation around family trusts and self-managed superannuation funds!

*Please note that Martin and Ed’s asset protection strategies are general in nature and do not take into consideration any of your personal circumstances. You must seek individually tailored advice to ensure you properly protect your business and personal assets.

Season 1: Episode 4: Trusts and Binding Death Benefit Nominations | Business Podcast & Law Podcast

Discretionary Trusts

First, we talk trusts; how they work and how they can be used to protect your assets.

Although trusts can be a great way to insulate assets from creditor claims (from both in and outside the family) trust structures are not ‘one size fits all’.

When setting up a trust, you will need to think about the potential risks unique to your family and business circumstances and think about who you want to have ultimate control over your assets.

As an initial overview, we explain the four key roles involved in the formation of a trust:

1. the beneficiaries: who may be entitled to receive income and / or capital from the trust;
2. the Trustee: who decides how to invest the capital of the trust and whether or not to distribute income or capital to beneficiaries of the trust;
3. the Appointor: who has the right to hire and fire the Trustee; and lastly
4. the Guardian: who may be required to give their consent to certain key decisions by the Trustee, for example, a decision to allocate capital to someone other than the primary beneficiaries. The Guardian isn’t a necessary role of the trust, and it is your choice whether to have one or not.

The hard part is then nominating the people for each role!

This decision will be a personal one, and in this episode we help you think through the possible factors and risks that might affect your decision.

Self-Managed Super Funds and Succession Planning

We tune in once more for our soap opera, “Business and Pleasure”. Last episode, Gino transferred a commercial property (i.e. the coffee shop) into his self-managed super fund.

This episode, we find out that Gino has been diagnosed with a serious illness.

Unfortunately it often takes a critical life event or illness for people to start thinking about succession planning.

Hopefully it isn’t too late for Gino to arrange his affairs!

In this episode we discuss who will take control of Gino’s self-managed super fund, including his commercial property.

Our key take away tips are:

1. think about whether you want a Binding Death Benefit Nomination for your super fund;
2. if you have a self-managed super fund, get an enduring power of attorney in place as soon as possible;
3. if you are concerned about a dispute, think about having an independent person act as trustee (or director of the corporate trustee) in the event your illness prevents you from making decisions.

Next episode we continue our conversation about trusts, and revisit the idea of Binding Nominations versus having the right controller of your super fund.

*Please note that Martin and Ed’s asset protection strategies are general in nature and do not take into consideration any of your personal circumstances. You must seek individually tailored advice to ensure you properly protect your business and personal assets.

Season 1: Episode 3: Trusts, Self-Managed Super Funds and Succession Planning | Business Podcast & Law Podcast

In our first episode, we discussed how best to protect your family home.  This week, we keep the ball rolling by exploring strategies for protecting the equity in your business, particularly if you own the shares in your company in your personal name.

Structuring your Business

To keep things simple in the start-up phase, many business owners set up a proprietary limited company and put the company shares in their own name. They then happily get to work building their business.

However, this simple approach can sometimes leave you exposed.

As a business owner, you may at some point find yourself personally liable to third parties for any number of reasons, including liability related to directors’ duties, OH&S or personal liability under guarantees or other contracts.  If you own valuable shares in your own name then those shares will be exposed to creditors and you may lose everything you have worked so hard to build.

So what can you do?

You can consider restructuring, but that can come at a cost in terms of tax, stamp duty and professional fees. In this episode, Martin and Ed outline some of the options, upsides and downsides.

Maximising your Super

We also consider how business owners may transfer business properties into their self-managed super funds, so that income produced from the asset can be distributed tax-free upon retirement!

Next week we will be looking at trusts, explaining how they work and talk about how best to structure a trust to protect your valuable assets.

*Please note that Martin and Ed’s asset protection strategies are general in nature and do not take into consideration any of your personal circumstances.  You must seek individually tailored advice to ensure you properly protect your business and personal assets. 

Season 1: Episode 2: Structuring and Protecting your Business Equity | Business Podcast & Law Podcast