Business succession planning

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To get started, contact All Financial Services on 08 8980  9300 today to make an appointment with one of our professional financial planners.

Why is business succession planning important?

When multiple individuals enter a business arrangement, one important financial planning element is to ensure a smooth transition of ownership in the event of the death, the disablement or a traumatic health episode of an owner. Putting in place a legal business agreement is an integral part of business succession planning. If a owner dies or is unable to continue in a business due to death or disablement, then such an arrangement ensures the preservation of a business for the continuing owner(s).

What does business succession planning include?

Business succession planning involves the development and implementation of commercial & legal strategies that will assist a business in continuing to operate in an effective manner should a particular event arise that will have a significant impact on the business. Some key aspects are as follows:

  • Financial considerations and valuation of your business;
  • Key triggering events;
  • Key people in your business;
  • Potential impact of capital gains tax (CGT); and
  • Method of funding the pre-agreed purchase price (e.g. insurance funded).

The role of a financial planner, lawyer and accountant

Whilst a financial planner can be principally involved in the business succession planning process, other advice should be sought.

A lawyer will need to be engaged to draft a commercial strategy and business succession agreement and to minimise the potential for any adverse outcomes, such as hostile estates, CGT, etc.

An accountant should be engaged to assess all taxation matters. Issues like taxation of insurance proceeds and capital gains tax (CGT) on transfer of the business’ ownership need to be addressed to properly formulate the agreement.

How can we help?

All Financial Services (AFS) works along side Ian Gray Solicitor (IGS) and you by providing a comprehensive succession planning service. A dedicated AFS financial planner will assist you in every step of the way from development of commercial and legal strategies to implementing the business agreement and assist with funding options.

You will also have access to a legal professional who specialise in business succession planning.