Financial Foundations

Business Succession Planning

As a business owner whether you decide to sell up, retire or have to leave due to health reasons, it’s important that you plan for the day that you will leave your business. Succession or exit planning outlines who will take over your business. This ensures that you have a predetermined plan to transfer ownership of your share of the business which aims to protect your business asset/s and avoid disputes.

When a shareholder dies, their share automatically passes into their estate and to their beneficiaries. This sort of major upheaval can result in a conflict of interest between surviving business owner/s and the “new business partner” who may choose to sell their share.

We can advise you and your business partners on how to:

  • Establish a business arrangement to ensure the sale and purchase of a person’s equity in the business upon retirement, death or disability.
  • Facilitate a buy/sell agreement that addresses key factors around establishing these agreements including obligations for shareholders to buy and sell, the method of valuation, and insurance policies to provide cash for purchase.
  • Funding solutions to enable a smooth transition and management of the business on exit of a business partner with minimal business disruption.

A good succession plan enables a smooth transition with less likelihood of disruption to operations. By planning your exit well in advance, you can ensure that the value of your business is retained and future needs and objectives are met.

testimonial

Munis Somer Accumulator

"I became a client at FFA back in 2012 after the passing of my dear father. My parents had for many years entrusted in them to look after their financial affairs which were very complex, such as retirement planning, super and investment advice. Since our first meeting I have been very happy with the services and advice they have provided me and my dear mother’s complex portfolio. They have greatly helped me in many areas of estate planning,
aged care, super, pension and redundancy.

After 3 years utilising their services I am more than delighted with the professional, high standard services I am receiving to this day as its very refreshing to work with a financial adviser who is truly interested in their clients needs and circumstances. The staff at FFA are always contactable, helpful and courteous and I am highly impressed with the depth of knowledge they offer.

Their ethical and caring nature is why I would highly recommend them to future clients."