Exit strategy to expand

2008 has been a great year for Healthcare Placement Solutions. Run by three partners, Georgina Etcell, Veronica Code and Jan Ahern, Healthcare Placement Solutions is a niche employment agency servicing clients and candidates from the pharmaceutical, medical device, dental and veterinary industries.

They developed a detailed plan involving increased marketing, better staff training, and a new incentive program. The result has been an explosion in sales which has seen staff numbers increase by 25%.

But having built a successful business, the three partners knew that they needed to put some plans in place to protect their investment. They needed to create an exit strategy to protect themselves and their business.

Their Commonwealth Bank Local Business Banker put them in touch with a financial planner, who helped them develop a comprehensive succession plan, including a Buy Sell Agreement and key person insurance.

“The knowledge and skills we bring to the business are what makes the business,” says Etcell. “Recruitment is actually quite a personal thing. Companies choose to work with one of us and that relationship is nurtured. Without us, this business wouldn’t be as successful.”

That’s why a succession plan was essential. “It’s all about protecting our business and protecting our investment,” says Etcell. “And protecting our people. It means that if one of us is sick and can’t work, then our business will survive and our staff will still have a job.”

The partners now have an effective exit strategy that protects the business and their investment in it. “If anyone needs to leave the business for any reason, personal or business, then the others can actually buy out that share and the business can continue to grow,” says Etcell.

Her advice to new business owners is to “research the business, do a detailed business plan, get some training so that you actually understand what it means to run a business and have a good talk with your business banker and your accountant.”