Posts Tagged ‘exit planning’

Value building and succession planning

Posted on: September 19th, 2012 by SeamusGates No Comments
Seamus Gates, Director, MHA Broomfield Alexander

Seamus Gates, Director, MHA Broomfield Alexander

Exit planning is all about timing. There are several actions you can take to maximise the value of your business, facilitate a smooth transaction and ensure its ongoing success.

A business primed for sale can be worth considerably more than one where the owners have neglected to plan ahead.

If you are expecting your business to fund a new business venture, or your retirement, consider that it takes on average more than three years to prepare a business for sale, or to reach a position where your day-to-day involvement can be substantially reduced.

There are generally seven stages of business succession:


Business succession – tax planning and potential pitfalls

Posted on: February 14th, 2012 by Leighton Reed No Comments
Leighton Reed, Director, MHA Broomfield Alexander

Leighton Reed, Director, MHA Broomfield Alexander

For all family businesses, succession planning is a must, given that sooner or later everyone wants or needs to retire.

However, if you own a family business (whether that be in whole or in part), there is more to retirement than just deciding not to go into the office any more. Aside from ensuring that you have sufficient funds to retire, the question of what happens to the business becomes paramount.

Key issues for consideration include, who will manage the business after you retire and how will ownership be transferred?

There are a number of potential exit strategies for a retiring business owner, such as an outright sale, a management buyout or a transfer of ownership to other family members.

Another key issue to consider is tax, with careful planning required to ensure that any potential tax exposure is minimised. Two of the key tax implications for succession planning are briefly discussed below. In addition, some of the potential pitfalls are also identified, which highlights the need not only to obtain specialist advice but also to start the planning process as soon as possible.