Succession planning in a business allows the leaders of today to plan for the leadership of tomorrow. You may be like most business owners – spending long hours making your business successful. When do you find time to plan for those significant ownership and management changes that seem so far in the future? The reality is that the earlier you begin the planning process, the more options you will have and the greater the chance that the outcome will meet your goals.
As a business owner, at some point you need to address how you will exit your business. Business succession that is strategically planned is a win for everyone.
Moving on from your business
Succession or exit planning supports you in maintaining control over how and when you leave your business and on what terms. Successful succession planning can help you to:
- Minimise your tax
- Secure your future income
- Provide a smooth transition for your team
There are many ways to exit a business and it can be useful to have an adviser guide you as to which will deliver the best result. Options vary in terms of complexity and payoff and include:
- Management buy-out;
- Employee share ownership plan (ESOP); or
- Sale to a competitor, supplier, customer or trade buyer.
Succession planning adds value
An appropriate exit strategy, or succession plan, maps out and considers every aspect of your business in order to achieve your desired exit outcome.
Succession planning involves making decisions about who will lead your business into the future, and who will take ownership of it. By taking charge of this decision-making process, you will be able to attract a higher sell price for your business and minimise the tax you pay on the proceeds.
Accredited Succession Plus advisers
Snedden Hall & Gallop Lawyers is an accredited Succession Plus adviser and the local partner in Canberra. The 21-step Succession Plus plan will guide you on how to use staged payments, superannuation contributions and capital gains tax concessions so you retain as much of the proceeds as possible.
The decisions you make during this process, through the help of our planning strategies, allow you to put what is best for your business first.
As accredited Succession Plus advisers, we are highly trained to assist you in this critical phase.
You can find out more about Succession Plus.