Succession planning to be in control with certainty and confidence
Waiting until something goes wrong – an unexpected death or illness, for example – only delays problems until a time when you and your family are ill-equipped to cope with succession planning properly.
While it is a truism that ‘tomorrow never comes’, the day before tomorrow always does.
Given life’s conveyor belt does not stop and people keep making life messy along the way, it’s important to start planning ahead for your business succession now.
Waiting until you are ready to retire can have serious consequences.
Without adequate succession planning and preparation, selling or transitioning a business can be a lengthy, painstaking process.
It’s been forecast that family businesses valuing approximately $3.5 trillion will change hands over the next decade as the baby boomer generation starts looking to retirement.
Coming to an agreement on how to manage ownership or transition of a business can invoke strong emotional reactions and destroy relationships. Succession planning provides clarity and direction (and, importantly, less possibility for disputes).
Succession planning ensures that all parties are not only aware, engaged, and in agreement, but also that funding mechanisms are in place to enable the succession plan to be implemented.
It is important to include it as part of your general business and financial planning, as circumstances evolve and change consistently over time.
When considered together with financial and estate planning, a solid succession planning strategy is smart commercially, financially, emotionally and in every other way.