Succession / Exit Planning

A well thought out and documented strategy to exit your business will potentially be an action that significantly impacts on your maximising your wealth. It also means that if something unforseen happens, you will reduce and minimise disruption to operations.

The impacts of a poorly planned succession can be substantial in terms of taxation, administrative costs, relationships and stress. Therefore it is imperative that plans that deal with your exit from the business are made and consideration given to the future.

The most simplistic succession planning exercise will identify when you plan to exit the business, who you will sell /transfer it to, be it a handover to your children, your existing partners, senior management or through the sale of your business to third parties.

But good succession planning goes beyond that. It requires a strategic approach to ensure the continuity and value of your business is maintained whilst minimising the disruption to the lives of those involved. It helps identify the key elements of your business that are of value to a range of purchasers and implementing a strategy focused on maximising those key value indicators, be it market share, product innovation, service delivery, cash flow or profitability.

A good succession plan will also take into account the best methods of maximizing your outcomes, whether it be availing yourself of the tax initiatives that can substantially reduce the tax impost of a succession related disposal, the funding arrangements or unwinding a complicated corporate structure previously put in place for the right tax or asset protection reasons at that time.

Nexia ASR has extensive experience in assisting existing clients to develop, implement and execute effective and successful succession plans.