Why is Succession Planning Important?
Succession planning is a critical part of good business planning. The better you prepare, the better the outcome you should achieve and the smoother the transition. If you do little planning, then it is likely that you will achieve a lesser outcome than may have been possible.
What if something happens to you?
- Do you have a Power of Attorney?
- Do you have a Will?
- Who should be your Executor?
- Is your business prepared for sale?
Recently, a client of ours has been faced with these questions. It involves a family business consisting of a private company which has two shareholders and one director. The director suffered a serious medical illness and was unable to perform his duties as a director. The director had a will but no power of attorney and was in no medical condition to put one in place. This left the company with no one legally able to make a decision and the likelihood that the courts would need to determine the outcome.
Thankfully we were able to resolve this problem without the intervention of the courts and problem causing relatives. However, this situation could have been disastrous with the business potentially forced to shut down.
What if you have simply just had enough of working in your business and just want to move on?
- Could you sell your business for what you think it is worth?
- Who would buy your business?
- Could you introduce a partner?
- What things do you need to consider regarding the transition?
Most people are forced into making these decisions due to a lack of planning. Sometimes it is too late! Don’t put everything you have worked for at risk. Our succession planning program will give you confidence and peace of mind no matter what happens in the future. You will have a clear plan of action for yourself and everyone involved.
