Your business is a long-term investment of both your time and financial resources. If you are looking to move on or retire, good succession planning is a must.
Effective succession planning helps you make the most of your estate planning strategies. Especially when you’re looking at moving out of the business either by selling it to a third party, to a family member or retiring.
The benefits of succession planning
Succession planning focuses on continued success in times of change. You can be left exposed when the personal circumstances of those involved in the ownership or management of your business change through divorce, illness, death, retirement or otherwise.
Succession planning is a big picture examination of your personal and business assets and responsibilities and identifying how best they can be smoothly managed in all types of situations. It is essential to ensure your assets and entitlements are protected in these circumstances. It puts you in the driver’s seat allowing you to take control rather than being reactive when a crisis hits. It also minimises the chance that disputes will happen in times of high stress.
Development of your succession planning
Development of a succession plan should ideally start between three and five years before you’re looking at moving on. This gives you enough time to put into place the structures necessary to achieve your goals.
In developing your plan we consider your goals for family, wealth, the business and your legacy. We ask the fundamental question ‘What do you want to achieve?’ Then we will help you to enact a plan to help you get there.
We have a specialist in Business Law accredited by the Law Institute of Victoria, so you can rest assured that your business is in good hands with our Bendigo and Castlemaine lawyers.
By strategising with Robertson Hyetts, you can ensure that you are in the best possible position to manage unexpected changes in your business without interruption to your operations.
Succession Planning FAQs
There are a few things that you need to think about when creating your succession plan including:
· who you want to take over the business,
· what your business is worth,
· when you plan to leave the business,
· what are the financial implications of you leaving,
· what training is required to ensure your successor can take over, and
· the legal requirements that must be completed to implement the change.
It is important to consult a professional when creating your succession plan. Your accountant can help identify financial risks and opportunities and your lawyer will make sure that you haven’t left anything out.
Farm Succession Planning
Robertson Hyetts has farm succession planning lawyers to help you ensure that the farm is passed smoothly to the next generation, at a time of your choosing. We can also provide advice about ways to transfer the farm to the children without attracting stamp duty.
If you are getting ready to develop a farm succession plan, please read our Farm Succession Planning page with extra blogs to give you some direction on where to start.
To motivate you into taking the time to talk to us about succession planning we suggest you read our article Succession Planning here.