Succession planning is an important consideration when looking for a business for sale
With the COVID-19 situation, retirement might not be front of mind when examining a business for sale, but you shouldn’t just be thinking about the short term, as retirement is an aspect that shouldn’t be ignored when looking to own a franchise. Stacey Gilbert, Snap-on Tool’s National Franchise Manager, discusses the importance of succession planning in franchise ownership, and how this can provide quality lifestyle benefits when retirement is on the horizon. Snap-on Tools is a leading global innovator in the manufacture of tools and equipment solutions for professional technicians and invests extensive resources to research and development for new products. The company will celebrate its 100th global anniversary in 2020, and this will also mark 30 years of operation in Australia with over 180 franchisees.
Whilst the franchise sector is categorised by businesses at different stages of their lifecycles, there are only a select few that can boast the length of tenure of that of Snap-on Tools. A longer operating history can be a good indicator for those looking for a business for sale that the franchise system in question is a sound investment, being able to operate and adapt through a variety of economic conditions and market changes. Snap-on Tools turns 100 in 2020 and has been in Australia for over 30 years. The strong partnerships that we have formed with each of our franchisees over this time provides assurances to prospective franchisees that we know what we are doing and that we work with our franchisees to achieve their business goals.
Having a clear and early plan on how ownership of your business will change hands once you retire is an important aspect to consider when buying into a business for sale – it may seem like a long way away, but having a succession plan can help you manage each life stage of your business. At Snap-on Tools, we encourage our franchisees to build their business in a sustainable way, and when the time is right to consider the need for additional employees. Not only will adding staff allow a franchisee to service additional customers in a more effective manner, it will also enable succession planning to become imbedded into the business. This expansion in the workforce will assist older franchisees to transition more seamlessly into retirement, with the lifestyle benefits that will arise from knowing that your franchise will be left in capable hands.
Whilst Snap-on Tools has a proud history with outlets spanning the globe, we are looking to increase our presence in the greater metropolitan area of Melbourne, which has the potential to be a huge source of growth over the coming five years. If you are in the market for a business for sale, make sure that you conduct detailed research by reading the disclosure documents that are available, which are great sources of information, and talk to the relevant franchisees and uncover their honest opinions on franchise ownership so that you can be confident that the franchise is the right fit for you.
Stacey Gilbert is the National Franchise Manager for Snap-on Tools Australia and New Zealand.