Business & Commercial
Family Wealth & Business Succession Planning Newcastle
It’s never too early to prepare for your business succession plan. Too often, without a succession plan, the business can end up being sold as a going concern or closed with the cost of disruption to shareholders, employees and customers. It’s heartbreaking to see a business that was once successful close its doors.
A business succession plan outlines what will happen and who will take over your business when you leave, whether by choice or by circumstance. The aim is to provide the business with a smooth transition so that disruption is minimised.
A good succession plan takes foresight and thought. It helps you think about what your company needs now, and what it will require in the future. It also helps you consider what kind of person would be best suited to take over the reigns when it’s time for you to leave.
Think about how you want your business to look in 10/20/30 years time and start developing your succession plans today!
Arrange a consultation to discuss business succession planning with our specialist business lawyers.
The Succession Planning Process
Each business is different of course, but you will likely need to consider:
1. Goals and objectives of all parties
- Do you require an ongoing income from the business?
- Will you have any future involvement in the company?
- Who is interested in taking over?
- What impact will there be on all members of your family?
2. Identify your potential successors
- Objectively assess their capability, needs, commitment, skills and experience
3. Consider all the angles
- Minimising Capital Gains Tax, Stamp Duty and Income Tax for you and your family and remaining partners
- Retirement income planning
- Financial implications of a business transfer
4. Contingency planning
- What will happen in the case of catastrophic injury or death?
5. Corporate structure issues
- Define the roles and responsibilities of current family members and employees
6. Business valuation
- Plan to increase the value of the business particularly if it is to be sold
7. Exit strategy
- What are the training or mentoring needs of your successor?
- How will you exit and by when?