Richard Cayne of Asia Wealth Group explains that many businesses start out small and without any business plan at all, the principle usually recognizes a need that is available in the marketplace and seeks to fill it. A business is then bourne once the service or product fills this need and then if a widespread need that business then has the chance to grow and expand. Many successful businesses originated in this embryonic way explains Richard Cayne at Meyer International from Bangkok Thailand.
As the business enters its lifecycle and over the years heads towards a mature business ultimately succession plans should be thought of. Richard Cayne explains that succession should be thought of as both continuity of the business as well as growth and exit strategy for the principle and its key shareholders. Too often does a business fail because the principle(s) change in what they want from their lives thus affecting the business and without having a proper succession plan in place much value can be lost. A typical case would be a family business where the children once though who would be the successors of the business have no interest in the business. This might come at a late stage in the business lifecycle and as such the owner due to health or changes of interest does not maximize the value of his/her company nor able to succeed it to those who can necessarily make the most of it explains Richard Cayne Meyer.
A typical solution usually done at last minute is an earn-out scenario where the principle hands the company over to its staff or management to carry on with the business while the principle(s) get paid out with an agreement over the following number of years. Usually the principle has a much higher value in mind for his business than what he/she is actually able to realize in this scenario which is far too common says Richard Cayne.
There are other ways of succeeding one’s business as such ways would be as a trade sale to a similar company in same or similar industry or an Initial Public Offering (IPO) introduction to the markets. However the latter is more of a new start explains Richard Cayne than an exit as an IPO really ties the principles further into the business than away from it.
In either event of succession it is strongly recommended to think about the various options and possibilities early on in the business lifecycle to try and maximize shareholder value and grow the business.
Richard Meyer Cayne , originally from Montreal, Quebec Canada currently resides in Bangkok Thailand with his wife Akiko Cayne and their two young children and runs the Meyer Group of Companies www.meyerjapan.com. Prior to which he was residing in Tokyo Japan for over 15 years and is currently CEO of Asia Wealth Group Holdings Ltd a London, UK Stock Exchange listed Financial Holdings Company
Richard Cayne has been involved in wealth management in Asia for over 19 years and has assisted many High Net worth Japanese families create innovative international tax and wealth management planning solutions. The public company of which he is CEO can be seen at www.asiawealthgroup.com or stock exchange link http://www.isdx.com/Asia Wealth Group