Nobody likes to think about it, but it’s inevitable that one day you will leave your business. Whether you decide to sell up, retire or have to leave due to health reasons, it’s important that you plan for that day. A succession, or exit plan outlines who will take over your business when you leave.
A good succession plan enables a smooth transition with less likelihood of disruption to operations. By planning your exit well in advance you can maximise the value of your business and enable it to meet future needs.
Make sure your succession plan is attainable – set a realistic timetable and measurable milestones along the way and stick to them. A succession plan will secure the future of your business
In 2020, the baby boomers generation (those born between 1946 and 1964) will be aged between 56 and 74 years of age with the weighing heavily towards the older end of the scale. The outcome will most likely be that by 2020 a significant number of baby boomers will have or will be in the process of transferring ownership of their business. In Australia, the estimated value of these businesses is around $3.5 trillion.
We think of succession planning as a process of evolution – Business Evolution. Enabling the compounding of wealth from generation to generation while ensuring family unity, individual growth and a sense of contribution, this is the essence of succession planning, this is Business Evolution.
We help you with these key issues
- Keeping it in the family. Are you going to pass the business on to your family or sell it to a third party? We help you weigh the advantages and disadvantages of each of these options.
- Who’s going to run the business when you’re gone? Management and ownership are not one and the same. You may decide to transfer management of your business to just one of your children but transfer equal shares of business ownership to all your children, whether they’re actively involved in the business or not.
- Minimizing the tax bite. The tax burden when transitioning a family business can be significant. The challenge is that a family business is not generally a liquid asset, but taxes are typically due when ownership is transferred.
- Making it fair. Transferring family ownership often adds a tremendous amount of stress to individual family members. We talk with each of the family members to ensure that they feel they a getting an equitable and fair share of the pie.
What we do for you…
Once we understand how you feel about the key issues above, we begin constructing your succession plan focusing on these 5 issues
- Business Valuation
- Business Restructuring
- Tax Consequences
- Retirement Projections
- Tax Projections
Let us help you pass on what’s taken a lifetime to build by requesting a Free Consultation.