We will partner with you to employ a holistic risk management approach to overcome the various succession barriers facing you, in your desire to achieve a successful business succession.
We will prepare and execute plans unique to your situation, starting with the Business Plan. The subsequent plans will seek to prepare your successor, yourself and your family for the transitioning of a viable business to a successor properly prepared to enhance the value proposition and business model to sustain the business growth and increase your family wealth.
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We will develop and guide you through the execution of a plan geared uniquely towards achieving your business sustainability and viability in the long run; with a view to transferring the business to your offsprings. The key objectives comprise, partnering with you to:
Assess the internal and external strengths and weaknesses of the business, juxtaposed against external opportunities and threats; and develop strategies to enhance (and revamp where necessary) the existing value proposition and business model, to continue the growth of the business and sustain the wealth created by you.
Provide any necessary business process improvement and operational efficiency guidance appropriate for your business current circumstance, to best position your business for long term viability and value to both an external investor and yourself, should you opt to either sell or transition it to your offsprings, respectively.
We will develop and guide you through the execution of a plan geared uniquely towards the preparation of your successor to succeed post succession or to prepare the business for a profitable sale. Our goal in this phase will be to implement all necessary steps, to ensure your successor acquires the requisite training, experience, qualifications and support to best position her / him to successfully lead the business in the future.
One of the key objectives will be to make the successor (and / or key staff) a focal point of the execution of both the strategic and operational strategies developed in the Business Plan. An example being the development/training of your successor (and / or key staff) to be proficient in the generation, assessment, remediating and monitoring of reports/metrics. Which presents the best opportunity for your successor (and / or key staff) to have a deeper understanding of and engagement in your business.
Ownership Transition Plan
We will agree and formalize timelines for the transfer of ownership, control and roles and responsibilities from you to your successor(s). Timelines for all stakeholders to work towards. And more importantly, timelines that eliminate any perception of you lacking the will to step aside, while mitigating the likelihood of you experiencing burnout.
This will likely entail the preparation and communication of a formal statement of the future intended direction and ownership of the business to family members and staff.
Provisions will also be put in place to overcome other probable family related barriers to a successful succession, including (for example):
”Equitable” allocation of the business
Together we will explore the pros and cons on the allocation of ownership and / or control among your offsprings, should you find yourself faced with this dilemma.
Probable changes in the successor’s intentions and abilities to lead the business
Partnering with you, we will promote regular open dialogues with potential successors. To ensure timely awareness of any changes in their desires. As this may allow for the timely pursuit of other alternatives, should the designated successor no longer wish to lead the business.
Wealth Management Plan
We will put provisions in place, geared to achieving your goals of retiring or exiting the business on your terms. It can be broken down into two parts to ensure your well being post succession:
Financial Well Being
An equitable remuneration arrangement will be agreed and formalised as part of the succession, whether for part time services, in retirement, or a combination of both.
Non-financial Well Being
Provisions for gradual increased time away from the business by you during the transition period, to facilitate a deliberate effort to seek out a path to continue enriching your life through outside interests. To ensure you experience no “sellers remorse” later in life.
Estate and Tax Plan
We will seek to develop appropriate strategies to minimize the potential tax burdens that are likely with business transfers.
Working concurrently with your lawyers & / or accountants to determine the most cost effective and tax mitigating means to transfer the business if this is the succession path chosen. A will ideally can be pegged to a succession plan for the business and vice versa. You may also consider the option of bequeathing your share of the ownership to your successor(s). As bequests of the ownership allocations in the business may minimize the tax burden on the successor. We will keep you apprised of the tax implications of changes to government legislation regarding wills and transfers of family businesses to ensure your interpretations do not go offside the legislations.
Post Succession Business Plan
We will partner with your successor to commence the groundwork for the development of their future vision for the business. The Post Succession Business Plan is the “survival kit” for the successor when he/she assumes the leadership of the business. And the more tools / strategies the merrier. The plan will include strategies to continue improving the business value proposition while staying true to the authenticity and expectations of the customers.
The Post Succession Business Plan evolves from the initial Business Plan. It should ideally reflect a very informed view of the anticipated market and industry situation and the likely direction it will take. And equally, it should reflect the successor’s very informed take on the company’s strengths and weaknesses juxtaposed against the market and industry conditions.