Is your Business ready for succession?
Article by Michael Noon
As the COVID 19 pandemic moves to the vaccination stage, many business owners are in reflection mode and contemplating how they prepare their business for succession. In fact, some owners have even brought forward their planned succession date, given the challenges of the last 12 months.
So how do you prepare your business for succession?
The first step to consider is what your succession options are.
These may include:
- Family succession;
- Management buyout;
- Third Party sale; and
- Retain equity and exit management.
Often a business owner will have a preferred succession option which they have been considering for some time. Even if this is the case, it is important to still consider all options before reaching a final decision.
The second step is to prepare for succession.
This will include:
- Conducting a review of all business systems and processes;
- Reviewing management structure and capability;
- Ensuring good financial, administration and customer relationship systems are in place;
- Reviewing current business profitability, and eliminating any waste;
- Identifying a Successor to your current operational role; and
- Ensuring the business can continue a growth path without you.
The last step is to prepare a plan for the next stage of your life. While in some instances this will involve some form of retirement; this is not always the case.
Before preparing your plan, you will need to consider:
- Your post succession financial position;
- Current personal energy levels and goals;
- Family circumstances and future personal commitments;
- Your appetite for financial risk and associated return; and
- New business opportunities.
Succession Diagnostic and Programme
To assist our clients in their succession journey, SRJ Walker Wayland have prepared a free Diagnostic tool to identify areas of focus for business owners. After completion of the Diagnostic, we take our clients through a succession programme that facilitates the preparation of a plan with ongoing implementation support.
Our free Diagnostic tool can be accessed here.
Government Grants Available
Should you wish to proceed with your business succession plan, there are Government Grants available to assist.
Please contact Michael Noon if you would like to discuss any aspect of succession in your business.