Here are a few quick tips to consider when starting succession planning: commence planning early in the life of the business; and always keep financial data up-to-date so that information is easily accessed and ready for any new plan.
It’s important to understand the overall strategic plan of the business.
What is the reality of our now: governance policies; business systems and processes; profitability and cash flow; growth opportunities; leverage; structuring; asset holdings – income/passive income; current business value; and management structure and skills.
Where do we want to be in the future: what are our succession options; what is the impact of these options; what might retirement look like; what role do you want to continue to play in the business; and what is your desired valuation/sales price?
How do we get there: action; milestones, timing and responsibility; financial and operational KPIs.
Consider all of the financial and tax implications of a succession plan.
Katrina Brennan, director, SRJ Walker Wayland Business Growth Advisors, Accountants and Auditors, Level 2/2 Innovation Pkwy, Birtinya, 5301 9957, srjww.com.au.
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