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14 | HIRE
AND
RENTAL
NEWS
| AUGUST 2012
INDUSTRY IN FOCUS
Douglas Munro, Managing Director of
the Munro Group offers advice on selling
baby boomer businesses.
During the next few years, thousands of
small businesses will come on to the market
as Baby Boomers decide to sell as a way of
funding their retirement.
Unfortunately, many will have no chance
of selling because there will be too many of
some types of businesses for sale and all the
owners can then hope to do is sell off assets
and close the doors.
A mistake often made is owners only
contact two people, their accountant or
business broker to sell their business.
Yet, there is another alternative. If the
business is trading well, selling desirable
products or services; with loyal customers
and a good reputation, a third option is to
continue trading. The owner could also talk
to a professional recruiter to find a general
manager to manage the business.
The business owner needs to consider
defining the person most likely to succeed
Planning to retire? Don’t sell - recruit and
keep trading
in the role of General Manager; and
developing a Position Description and
Person Specification for the role.
To recruit the General Manager there are
a number of options. Popular media with
a well crafted advertisement can attract a
person who was not looking for a job; The
Internet; Search methodology; Networking
and data bases.
The more skilled the Recruiter, the better
the result in putting a short list of potential
General Managers together.
The secret to selecting the ‘right’ person
once a short list is prepared is in ensuring
cultural fit once a person’s technical
capability is established. The Professional
Recruiter will have identified issues such as
cultural, religious, age or gender that may
impact on the appointment.
It is also important to focus on the
owner’s plans for the future.
It is common for the initial enjoyment
of retirement to wane. Business people
who have led busy lives often get sick of
playing golf, travelling, and doing all the
little things previously postponed, and can
become bored and irritable.
This hidden problem is solvable if a
number of early steps are taken including:
• Discovering the interests, passions and
motivations of the owner
• Leading the owner into realising they
cannot simply walk away and sit under a
palm tree for the rest of their life
Today we are faced with unique
economic circumstances. We have the Baby
Boomers’ Bubble, financial uncertainties,
instant communication and information
transfer, carbon tax debates and our
increasing involvement in world affairs.
If it is decided not to transition ownership
within the family, two options remain.
First sell, or secondly, recruit an external
General Manager. The sell option can
always be exercised when times are more
favourable and for the interim, the business
is held in the family for the immediate
future and financial benefits continue.
For more information contact 02 9906
2588 or visit: www.munroselect.com.au
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