What will happen to your business when you are ready to retire? It’s important to create a succession plan for the future so that successors can be groomed and you can enjoy the rewards of having built a business.
Family businesses often find they have waited too long to begin planning their exit. Younger generations don’t always share their expectations of work. At the same time, economic and technological change can have unforeseen consequences.
What is succession planning?
Let’s first consider the definition of succession planning. It’s a strategy through which key individuals within a business, organisation or family are vetted and prepared for future leadership positions within the company.
These individuals may be the children of current business owners and operations, but that is not a necessity. Business succession planning could just as easily involve identifying promising candidates within the company who are being prepared to eventually take the reins from the current leadership when those positions become available.
In either case, the succession planning process is always about making the transition to new leadership as seamless as possible.
Expert support and guidance
We assist clients to successfully hand the reins of the business over to the next generation or to extract its full value on sale. Our advisors are experienced in dealing with all aspects of succession planning. They understand the psychology of success, drafting a will and dealing with the ‘dilemma’ of Capital Gains Tax. We can advise you on:
- Evaluating where a business currently stands in terms of its development
- Determining how to maintain and improve the value of the business
- Transitioning management across to the next generation or an external party
- Valuing the current business, and strategies to improving saleability and maximise value
- Minimising taxes and transaction costs
- Locating potential buyers or external management
- Analysing the potential for a management buy-out, trade sale or public listing
- Ensuring that accumulated wealth is separately and safely protected
- Financing the next generation and ensuring that wills are set up to properly deal with the business
- Structuring life insurance policies and dealing with risk management issues
- Ensuring retirement is planned and fulfilling.
Security for your business and family
Crafting effective succession planning strategies requires significant legal expertise. Previous experience is also a critical factor. However, because a major shift in leadership occurs only rarely within the average organisation, experience is often lacking. Fortunately, the specialists at Accru have overseen and helped direct this transition for numerous companies – large and small. We have the experience and expertise necessary to ensure your organisation’s leadership transition is a success.
We work through the challenges and family intricacies with you to maximise family wealth for retirement and achieve a beneficial outcome for everyone involved. Our approach helps to make the process of transitioning to a less hands-on role as smooth as possible.
If a change in leadership is on the horizon for your organisation, contact Accru today to speak with a specialist.