Succession Planning

Why have a succession Plan?

If the Exit / Succession plan is not done by plan in advance of the need, it will be done by crisis, with potentially disastrous result.

The benefits of planning:

• Maximising the value of the business to sell or transfer
• Minimising tax on the transfer or sale
• Retire in security
• Smooth transfer to the next generation or fellow employees / directors (if that's what you want)

Click to learn about Employee Share Schemes and the low tax you pay on profits from such schemes

The difference in capital gain or retirement income is very considerable in most cases between a planned exit and an unplanned one. It is impossible to give a specific percentage figure without knowing the individual circumstances of your business. The gains apply just as much to small businesses as larger ones.

All people who drive a business need an exit / succession plan regardless of the size of the business and the specific reason for exiting. There is also one special circumstance which should be planned for : the owner(s) death. Whilst most business owners carry life insurance this is not enough to guarantee the continuance of the business.

Start now! That is probably the most important piece of advice we can give. Whether your goal is to maximise the capital gain from the sale, secure a comfortable retirement, ensure employment for the current work force or pass it on to other family members there are actions to be taken.

Sig Biz Advisors can help you to ask the right questions and start to formulate a plan. You will probably need expert help in some areas of this plan. If you do not already know of experts in the field we can put you in touch with them as required. It should be stressed that the best exit plans do require specialist help and should not be attempted by those who do not do work regularly on exit and succession planning. We work with the Institute for Independent Business on exit planning and other matters in order to find the best specialist for the job at a price that is good value and fair to you. Next steps? Telephone for a detailed chat or to arrange a meeting.