We all understand the importance of having a legal Will, and a formality that is just as critical for business owners is a well-thought-out succession plan. Business succession planning – have you thought about it?
Unfortunately, many business owners fail to plan for their own exit – perhaps believing they will be 100% in control of when they will leave the business and that who will succeed them will be clear at the time. However, there are many instances where this may not be the case with unforeseen events such as conflicts between partners, illness, or even death of the business owner leaving companies struggling to continue. This not only has ramifications for business partners, employees, and customers – but also family members, should any personal assets be tied up in the business.
Business succession planning can be developed at any stage of your business’ lifecycle and should factor in the following considerations:
- What should happen to your business if you were to fall ill, or become incapacitated?
- What should happen to your business if you were to pass away?
- How involved do you want your family members to be in your business if you were to pass away?
- What do you want your retirement to look like – and will you want to retain part-time hours?
It is also important to review and adjust your succession plan at key points of your business’ journey, for example, if you merge with another organisation or when taking on a new business partner.
Nav Accountants has the expertise to deliver a wide number of Business Advisory solutions, in addition to the above services, including business succession planning.
We have the capability to support organisations of all types and sizes and welcome the opportunity to have an obligation-free discussion with you today.
