What is business succession planning?
A business succession plan outlines what will happen and who will take over your business when you leave, whether by choice or by circumstance. The aim is to provide the business with a smooth transition and where possible, minimise taxation and duty consequences arising from the transition.
A business succession plan can take many forms and involve numerous documents. It could include share sale agreements, options, deeds of family agreement or other specialised and complex legal documents.
Business succession planning – what needs to be considered
Each business is different of course, but you will likely need to consider:
- Goals and objectives of all parties
- Do you require an ongoing income from the business?
- Will you have any future involvement in the business?
- Who is interested in taking over?
- What impact will there be on all members of your family?
- Who are potential successors?
- Objectively assess their capability, needs, commitment, skills and experience
- Minimising Capital Gains Tax, Stamp Duty and Income Tax for you and your family and remaining business owners
- How to fund the buy out/exit
- Retirement income planning
- What will happen in the case of catastrophic injury or death?
- Business valuation
- How will you exit and by when?
We can help
There is no “I” in team. These are complex issues, spanning legal, financial, accounting and management fields. We will work with you and your other trusted advisors such as your accountant and your financial planner to deliver an effective business succession plan.
Contact us to discuss your matter with a Townsville Business Lawyer.