Business exit and succession planning

Prepare for the future

Selling a business or passing the reins to the next generation can give rise to a range of complex financial and business issues.

For many people their business is their ‘superannuation’.

Ensuring the maximum value is received for the business without creating an excessive tax bill has a major bearing on the level of comfort in retirement. But whatever the reason for selling, LDB is ideally placed to assist in the successful transition of the business to new owners or the next generation.

The value of your business

Some of the questions business owners need to think about when looking to sell their business include:

What is my business worth? How can I increase its value to a purchaser?
Is my business ownership structured properly?
How much tax will I pay? What are the concessions I may be entitled to?
What are the key things I need to do to prepare for a sale?
How can I minimise warranties and indemnities?

Ensure that your business is in top shape for whenever you are ready to move on.

Handing over the reins

Additional questions arise where the business is passing into the hands of younger partners or the next generation in the family. How can the retiring owner receive full value for the business they have created? How can the new owners finance their equity in the business?

In many ways, business exit and succession planning should start before the business is even established. This means the appropriate ownership structure can be set up right at the start. If that didn’t happen, and even if you don’t intend to sell anytime soon, there are good reasons to start planning now.

Doing so will help ensure that your business is in top shape for whenever you are ready to move on, and that your business plan complements your overall financial plan and risk management strategy.

LDB offers all the skills required to achieve a successful exit from a business and a smooth transition to new leadership.