Only when the tide goes out, do you discover who’s been swimming naked

2020 has certainly been an unusual year – but like many other years in history, there are themes and learnings we can apply to what might happen going forward. For example, for several years after the Financial Crisis (of 2007/2008), there was a heavy concentration of activity for mid market mergers and acquisition – some companies which had survived, and even prospered, during that period had cash reserves and an appetite for growth through acquisition. Others who had done less well and perhaps been caught out by the severe shock were forced to take more drastic action – either restructuring or even selling at a reduced price.

COVID-19, like the Financial Crisis, has forced business owners to act – they have had to take action to either ensure survival, pivot to a different way of delivery or even a different product. Others have had to decide to exit, sell or close their business.

We have also seen a substantially increased focus on employee engagement, for people who had teams working from home “unsupervised” they were keen to make sure those employees were connected, engaged, and motivated. The strategy to introduce employee ownership works well in most businesses, with the owners seeking to engage employees and encourage them to think and act like business owners, with all parties benefiting from the improved performance. In difficult times, employees need to fell part of the team.

2021 will also be an interesting year – some countries have managed COVID very well and are already in recovery and growth mode. Others are struggling with COVID still increasing and lockdowns in place – they are only waiting for a vaccine before they can enter growth mode again.

The key lesson here is to think strategically, plan for the long term and ensure your business and your finances are well-managed, strategically planned, risks are mitigated, and you are well-placed to take advantage of whatever opportunities arise in the next 12 to 24 months.

For those who have taken the hard steps in 2020 and prepared well – this is often the best of times to set up for the next ten years.

“Predicting rain doesn’t count. Building arks does.” – Warren Buffett

Dr Craig West

Founder & Chairman | Succession Plus

Dr Craig West is a strategic accountant who has over 20 years of experience advising business owners.

With a background as an accountant in practice and two master’s degrees, Craig formed a strong view that the majority of business owners (and often their advisers) were unprepared and unaware of the steps required to prepare for exit. He then designed and documented a unique 21-Step Business Succession and Exit Planning process to assist owners and their advisers in navigating this process.

Craig now acts as a strategic business and financial mentor for mid-market business owners. Craig has written four critically acclaimed books educating business owners on employee incentives, succession planning, asset protection, and exit strategies. Additionally, he has completed doctoral research on Employee Share Ownership Plans (ESOPs) for succession.

Craig is a Member of the Forbes Business Council where he leverages his extensive experience to contribute valuable insights on helping business leaders navigate the complexities of growing and exiting their businesses.

In April 2024, the Exit Planning Institute admitted Craig to the International Exit Planning Circle of Excellence.