Succession Planning Overview

Succession will affect every business at some point. It is inevitable and yet so many business owners don't have adequate plans in place. Early succession planning allows the greatest chance for your business continuing by: 

• being financially independent at your desired retirement age, 
• being able to transition your customers/clients on to a successor, 
• preparing for catastrophes, and 
• realising maximum value in all scenarios. 

If managed properly, this is your opportunity to create wealth in your business. The benefits of succession planning are: 

• Choose when you wish to retire 
• Minimise disruptions for your clients 
• Maintain continuity of employment for staff 
• Maintain suppliers’ credit terms 
• Retain the confidence of banks and financiers 
• Manage lease and loan liabilities properly 
• Reduce the pain of a forced retirement 
• Avoid conflict with business partners 
• Maximise the value of your business 
• Ensure adequate funds for yourself and your family 
• Increase the number and quality of potential successors 
  

Succession is a management issue that should be addressed 5—10 years in advance of implementation. Plan for several possible scenarios, to enable the departure of an owner or partner, whether through forced/unexpected events or by retirement. Succession planning is important at the beginning of a business as life is unpredictable!

Often the emotional aspects form the initial barriers to a succession plan, including personal relationships, family concerns, issues of relinquishing control, and beliefs that the owner will keep working beyond retirement. Succession planning can be seen as a threat to security and status. 

It can be difficult for partners to suggest to a colleague that it’s time to start thinking about retiring, but transparent and open discussions always result in fairer solutions. If a plan is established well in advance then emotional issues can be reduced.

How can Brentnalls SA help?

At Brentnalls SA, we have the knowledge and experience to guide you through the preparation of a succession plan. Contact us today to make an appointment.

Disclaimer
The information provided in this information sheet does not constitute advice. The information is of a general nature only and does not take into account your individual situation. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you contact Brentnalls SA before making any decision to discuss your particular requirements or circumstances.