"A leader should future proof their business"
When successful business owners reach a certain age, it becomes imperative that they address the issue of succession planning. Many of them may have been dodging this particular conversation for years, but actually there are significant benefits to having a succession plan.
Estate planning for older generation
By having a clear succession plan, you can make sure the right assets go to the right people and the business isn’t going to be landed with a big liability, and ensure Inheritance Tax (IHT) is taken care of.
Reflecting input/responsibility in the business
It is important to have in place a structure which reflects more closely the input given to the business, as this provides ultimate clarity and fairness. It is also giving the older generation the opportunity to realise their equity in a tax efficient way, and a way of passing wealth down the generations.
Increase the value of the business
It can help a business become more sale-ready by having a clear succession plan. This is because it includes handing down and sharing expertise and putting a management structure in place, which reduces owner dependence.
Improve the company's productivity
Going through the process of producing a succession plan, will help by systemising the business and embedding these best practices in the culture of the team rather than this being dependent on the owner – this will result in better growth and profitability.
Planned and orderly exit
To have a clear plan for an exit is crucial, rather than unplanned which could have a disastrous impact on the business (financial or customer/USP related).
There has been great emphasis on having a succession plan. In a family business, particularly with 2 or 3 generations, it is vitally important that you start thinking about succession.
The solution? Get top-level advice on succession planning, and work through the steps of producing a succession plan, including ensuring all financial and legal aspects are covered. We invite you to contact us to explore how we can help you develop and execute each step in your succession plan and strategy.
Please note – This report is provided for information only. No action should be taken without consulting detailed legislation or seeking independent professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this report can be accepted.