Business Succession Planning

Succession Planning should ideally commence as the same time as the business starts up. This is because it represents the final step for the incumbent owners. At a minimum planning should commence ten years prior to the owners stepping away. This is a realistic time frame for all the matters to be addressed in order to have an effective transition. Questions to be asked at the outset include is the plan to:

• Sell to a third party
• Sell to management
• Transfer to either the next generation or to extended family members
• Do nothing and allow the business to whither on the vine

It is critical that the current owners agree on what the plan. Only at that point is it possible to prepare and put in place a comprehensive strategy that will deliver the right outcome. Succession planning for business owners can be arduous and it requires discipline in implementing in an effective manner. The end reward is a successful transition from the existing to the new owners will ensure there is no loss in value in the process.

Our firm has had significant exposure over the years to assisting our clients with planning for succession. We’ve also conducted public forums and have had published a number of articles on the subject.