Posted by: Chloe Kopilovic | Date: 20 March 2012
Business Succession Planning can be a difficult and long process, however the rewards of a properly documented Succession Plan far outweigh the time and effort spent in preparing the plan. Too often have I seen clients attend my office after an event such as death or retirement where a business is suffering. Often problems could have been avoided with a properly documented Business Succession Plan.
In simple terms, Business Succession Planning is developing a strategy to transfer the ownership, management and financial responsibility of a business.
There are a number disciplines and professionals that should be engaged to ensure that the Business Succession Plan achieves all of your objectives. Often I will meet with Accountants, insurance brokers, financiers and sometimes management consultants to ensure that all areas of expertise are involved.
It is difficult to outline all matters that should be outlined because each business is different. Depending on the business the following matters should be factored into the Business Succession Plan:
It is very important a structured process to approach the Business Succession Plan. The process will involve consultation with appropriate professionals and deal with all of the elements that need to be considered. Part of the process also involves conducting a review and due diligence of the business.
This approach will include considering the following questions:
It is very important that details consideration is given to any business succession plan, and professional advice sought from a number of disciplines.
Please do not hesitate to contact me if you would like to discuss this very important strategy for your business.