Succession planning is an important concern for owner-managed and family-run businesses, requiring matters to be handled delicately and with a thorough understanding of interpersonal relationships.
Have you and your partners/shareholders considered what will happen when you or a partner/shareholder is no longer involved with the business? It is vital for a business’s stability that you carry out succession planning.
As a business owner you have many, often conflicting goals. Here are a few examples of fairly typical objectives for an effective succession plan:
- To give your partners/other shareholders (or perhaps your family who are working in the business) the opportunity to take your place/your interest in the business/your shares
- To maintain a viable thriving business capable of supporting the needs of the business and the employee workforce
- To provide you with an exit route
- To ensure the future of the business
- To give all concerned a blue print for the future, security knowing that a retirement/succession plan is in place to which all concerned have “signed up”
The future well-being or existence of your business may well depend on the legal and financial plans you have or, in some cases, have not put in place during your working life.
Often, the many issues to be considered and addressed include not only the future company structure, but also tax planning for the company as a whole and tax planing for its owners on an individual basis. Accordingly, a holistic approach is required from a company law and private client law perspective and with the involvement of other key professionals, such as accountants.
Arrangements that may be necessary may include Partnership Agreements, Shareholder Agreements, Consultancy Agreements, Wills and Trusts. An experienced team of legal advisors is crucial to guide you through this process and will add value to key decisions that need to be made.
Our team can advise you on:
- Succession planning
- Tax planning
- Partnership Agreements
- Shareholder Agreements
- Consultancy Agreements