Business Succession occurs when a business owner exits or winds up the business.
This event can occur in a number of ways e.g.
The business owner may make a decision to retire on a certain date.
The business can then be-:
- Sold on the open market
- The owners share can be sold to an existing partner(s).
- The business can be transferred to a family member (e.g. Children, siblings), or
- The business can be simply wound up.
Alternatively the decision to exit or wind up the business may be out of the control of the business owner, their partner(s) or their family.
This normally arises when-:
- The business proprietor or one of his family members die or become ill unexpectedly.
Every business has to have a business succession plan to cover each of these potential events.
Too often we see business people work for their whole life in the expectation that they are going to fund their retirement out of the proceeds of the sale of the business, only to find that there are no buyers or that their expectation as to the value of the business is unrealistically high.
In addition to this we see family futures destroyed, when principles die or become ill unexpectedly and business and assets need to be sold at fire sale values to repay debt and for the family to live.
Don’t be caught in this position.
We specialise in orderly well planned business succession strategies.
We provide advice and assistance in relation to-:
- Various Business Succession strategies and plans
- Valuing the Business or proprietors interests
- Negotiating meetings between potential buyers, business partners and family members.
- Structuring appropriate Buy and Sell Agreements and sale contracts.
- The Income, GST, Capital Gains Tax and State Revenue Taxes in relation to Business Succession.
- Wealth Protection Insurance Solutions.
- Developing a written Business Succession plan to cover a wide range of circumstances.