Our experienced succession planning lawyers can help guide you to the best outcome so you can have peace of mind.
Business succession planning
Business succession plans are a handy tool to make sure you leave your business in good hands if you or members of your management team retire or have to leave it unexpectedly due to accident or illness. Even if you’re thinking of selling your business in a few years, a succession plan will show a prospective purchaser that the business is in good hands, that there is a clear plan to transition to a new owner, and can be favourable when considering the value of the business.
If you own some or all of the business, your business succession plan may also help with your personal estate planning.
What a succession plan should consider
Your succession plan should consider a range of factors including:
- Who would run the business when you retire or if you’re unable to due to accident or illness;
- What training or skills transfer is needed for them to take over the business;
- What the value of your business is;
- When you would like to exit the business;
- How the business is structured and any plans to revise this in line with your succession plans;
- Any aspects of the running of the business that need to be considered, like licenses or registrations that would need to be transferred; and
- Any agreements that need to be amended as part of your succession plan, like shareholder or unitholder agreements.
Why MNG Lawyers
Frequently Asked Questions
While it’s never too early or too late to create a succession plan, it’s best to put one in place three to five years before you plan on leaving the business. This will give you enough time to make any of the structural or legal changes that you need to make and ensure your successor has the necessary skills to take over.