Why do you need a Succession Plan?
Often people don't like to think about succession, let alone retiring. However, one day you'll inevitably leave your business. Whether you decide to sell up, retire or leave due to health reasons, it's essential that you plan for that day. A succession (or exit) plan outlines who will take over your business when you leave.
How important is a succession plan? It's essential as it can affect personal relationships, family, staff, customers and suppliers. Life's circumstances can be unpredictable!
By planning your exit early, you can maximise the value of your business while helping to meet future needs. Succession planning should be addressed at least 5-10 years in advance of implementation.
Mapping out a plan provides for the highest chance for success by:
- being financially independent at your desired retirement age,
- being able to pass your clients on to a successor,
- preparing for catastrophes, and
- realising maximum value in all scenarios.
The benefits of succession planning:
- Choose when you wish to retire.
- Minimise disruptions for your clients.
- Maintain continuity of employment for staff.
- Maintain suppliers' credit terms.
- Retain the confidence of banks and financiers.
- Manage lease and loan liabilities properly.
- Reduce the pain of forced retirement.
- Avoid conflict with business partners.
- Maximise the value of your business.
- Ensure adequate funds for yourself and your family.
- Increase the number and quality of potential successors.
Consider this, if you don't want to leave your business and your wealth to chance, then plan to ensure security for your family, your business and yourself.
Where are you now? What are your goals, needs for succession? These questions and more are an essential part of the service process. We can assist you to manage the the following elements of succession planning:
- Voluntary & Involuntary Succession
- Legal Documentation
- Financial Transaction
- New Owner Agreement
- Funding Options
- Risk management
While it can be challenging to discuss the matter, if a plan is established well in advance, then the emotional issues will be reduced.
Helping businesses achieve their goals is our passion, and our strength is in our dedicated professional team.
Make the time today to book an appointment to discuss the benefits of Succession Planning with one of our expert advisors.
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