Do you value your business?
Life as self-employed is unpredictable, and even though the thought of selling the business might seem distant, it is important to be prepared for the future – especially on Bornholm, where it may require an extra effort to find the right investor or buyer.
How can you easily and effortlessly hand over the management of your business, secure a good price and move on with your life without worries? That is the theme of ’Do you value your business?’ – organised by Business Center Bornholm and Erhvervshus Hovedstaden, which takes place on 23 January 2024 at Hotel GSH in Rønne.
The event is being coordinated by senior business developer Ebbe Mølsted-Møller, an expert in management and financing, who explains that the purpose is to raise awareness of how important it is to be proactive and draw up an exit plan. Ultimately, it is about securing an optimal price and ensuring the inheritance is passed on.
”In Denmark, nearly 23,000 business owners are approaching the 60 to 65 age group where it is relevant to initiate an exit plan. Typically, however, we see that this process is only taken seriously when the owners are 75 or older, and Bornholm is unfortunately no exception. Our goal is therefore to raise awareness of how important it is to start considering the company's future well in advance – at least five years before a change of ownership is to take place.
He also emphasises that even if you start the process, you do not have to close the door completely on your business. For example, some fear boredom after a sale, but Mølsted-Møller reassures that there are many opportunities to find a new role where you can use your expertise and experience without having to bear the primary responsibility.
”Many people find it difficult to picture themselves in another life. But it is, of course, a priority to consider what you want for yourself after the ownership transition. Do you wish to continue in a consultancy role, on the board, or something else entirely? Whatever the case, my experience is that the vast majority regret not starting sooner. A well-planned ownership transition releases new energy for other things in life – and your ”baby” and fortune will not be dropped on the floor.”
Finally, there is the advantage that you are prepared if there is an urgent need to change focus.
”Life is unpredictable, and as a business owner you should constantly be prepared. The very simple advice is: Treat your business like your home. If the condition report has flaws and defects when one day you decide to sell, you won't get the best sale. Think ahead – that is the best investment.”
In Denmark, nearly 23,000 business owners are approaching the age group of 60 to 65 where it is relevant to initiate an exit plan. Typically, however, we see that this process is only taken seriously when the owners are 75 or older, and Bornholm is unfortunately no exception. Our goal is therefore to inform about how important it is to begin considering the company's future in good time – at least five years before a change of ownership is to take place.
Michael Brandt: ’the thought pops up from time to time’
One of the panel participants at the event is Michael Brandt, who in 2020 acquired Baltic Sea Glass and at the same time partially returned to Bornholm. Despite his mature age, he did not hesitate to begin a new chapter in the business world. And although he describes himself as an entrepreneur by nature, this does not stop him from reflecting on a future where he does not have one of the leading roles in the company himself.
"Now I’ve turned 65, so I think it’s time to look at how I start the process, as it can take many years. Besides, I have a solid business partner, Jan Engelbrecht, fourth generation at Eva Danmark, who of course also needs to be involved. That’s one of the great advantages of a partnership; you can bounce ideas off each other and devise a good strategy, Brandt emphasises.
He himself calls the decision prudent foresight, as he knows what it is like to encounter the unexpected – in a previous job as an export manager in Asia, he was struck by an illness that rendered him unable to work for a long period.
However, he points out that there is neither a need nor a desire to sell Baltic Sea Glass here and now.
”I am happy every single day I go to work, even though I have never worked as much as I do now, he laughs.
”At the same time, it is important for me to ensure that the spirit of the company is carried forward. The founders of Baltic Sea Glass, Pete Hunner and Maibritt Jönsson, have spent 39 years building a unique brand and a great workplace – I have deep respect for that, and safeguarding it is very close to my heart.
I do think that Bornholm is the loveliest island in the world, but having to move here is life-changing, and therefore it takes time to find the right new investor or buyer. It has to be a match on many different parameters.
As a commercial glass expert, he also sees Baltic Sea Glass developing further – among other things through new concepts and designers. The possibilities associated with a change of ownership are thus wide-ranging, he points out, even though an immediate dream is to give the employees the chance to buy into the business over a longer period.
”A so-called ”management buy-out” would make a lot of sense, as a glassblower possesses unique artistic skills that are important for our company – we would then still be able to contribute as consultants regarding the business side of things, if it made sense and we made an agreement to that effect.
Lifelong experience from the ”grey gold” can be important sparring and help in making timely decisions.”
However, this is easier said than done, he reckons.
”Efforts should be made by the government to facilitate this process and preserve small businesses, because very few are able to raise the necessary funds in a relatively short space of time. The alternative is that businesses simply shut down. I think it is a really important focal point, because one must remember that big things start small.”
Brandt, who remains open to several scenarios regarding the company's future, does not, however, predict that a generational handover is a possibility, as his daughter Mathilde, who runs the webshop and social media, works in their other business and lives in North Zealand.
One thing he is in no doubt about, however, is that it is particularly important to get your timing right regarding a change of ownership when you are a business owner on Bornholm.
”I think that Bornholm is the world's most lovely island, but it is life-changing to have to move here, and therefore it takes time to find the right new investor or buyer. It has to be a match on many different parameters,” he says, adding that he looks forward to ”thinking out loud” as a panel participant at the upcoming business event.
BY TINA TOFT MØLLER
About the event ’Do you value your business?’
The event will be held on 23 January 2024 from 14:00 to 17:00 at Hotel GSH in Rønne and the day offers plenty of inspiration:
Jette P. Jørgensen, general manager and expert from the Centre for Owner-Managed Businesses at CBS, will provide insight into the financial and legal benefits of timely planning.
There will also be an in-depth review of the practical steps and personal considerations in the ownership transition process. Local business owners will share their personal experiences and insights in connection with the purchase, sale and generational handover of businesses on Bornholm.
Finally, opportunities for financial support in connection with the preparation of a succession plan will be presented.
The event is aimed at all business owners on Bornholm, and it is not a prerequisite to have current sales plans in order to participate.
Registration and further information about the event can be found here: Events - Business Centre Bornholm
Do you require further advice on a change of ownership?
There are currently various options available through the EU programme SME:PRO - You can read about that here. SMV:PRO is part of the business programme, virksomhedsprogrammet.dk/smv:pro
The event is organised with financial support from the EU Regional Development Fund and the Danish Board of Business Development.
