Succession planning, business sale & exit 

When it comes to selling a business, it’s almost never a case of hanging a shingle and crossing your fingers and hoping a buyer will arrive. Serious buyers want to know that they’re buying a real and sustainable business, not just you (especially if you’re planning on exiting the business).

Yet significantly fewer than half of all business owners have any kind of documented succession plan in place.

So, if you’re in the lead up to working your way out and you don’t yet have a succession plan in place, you’ll need to work through the following;

  • What’s the market value of the business currently? How will that change over time?
  • Will the succession plan cover all the partners/owners or just one?
  • Who will take over as your successor?
  • Is there another choice if your first choice isn’t available for any reason?
  • How and when will you communicate that change to your staff, your customers/suppliers as well as any other shareholders, the market, etc
  • What plans have been put in place to train your successor for the role? Over what timeframe and by whom?
  • What’s the timeframe to implement your succession plan? And at what point will you relinquish the reins?
  • Are there likely to be any restrictions on your leaving or the new person starting?
  • What undertakings have you made that the skills in your organisation will be retained when you step down and your successor takes over?
  • Which licenses, permits, IP, contracts, registrations, leases, insurances, memberships, etc need to change as part of the changeover?
  • Who’s preparing the document that contains all of the above information?
  • Is there a buy/sell agreement that needs to be reviewed?
  • Do wills need to change?
  • What are the tax consequences in the event of a transfer or sale?

Then after considering all of these questions, the information must be plotted on a succession timetable and followed by developing a risk/contingency register.

It might seem like a lot to add to the already full plate of a business owner and you’re right. That’s why good help is critical to ensure a smooth transition/sale process.

So if you or someone close to you owns a business and is looking to exit at some point and needs some assistance – we’d be only too happy to have a chat. You can give Dom or Grant a call on 9634 6107 or get in touch here.

Behrens Rowley – giving you better business advice.

Not all accountants and financial advisors are created equal! If you’d like better business and financial advice starting today, we’d be pleased to help. You can give us a call on 9634 6107. If there’s anything we can do to help you get on with the business of growing your business, please give Dom or Grant a call on 9634 6107.

Book your Business Review session now.

Behrens Rowley – giving you better business advice.

Not all accountants and financial advisors are created equal! If you’d like better business and financial advice starting today, we’d be pleased to help. You can give us a call on 9634 6107. If there’s anything we can do to help you get on with the business of growing your business, please give Dom or Grant a call on 9634 6107.

Book your Business Review session now.