So you’re thinking about leaving
your business?
E
xiting a business you’ve worked hard to
build up can be tough. The reasons why
1. What is the burning question/issue you
most want resolved?
you might want to think about moving out
Examples could include: I want to be
of your business include:
able to help my son and his wife into this
• retirement
• health issues
• desire for a lifestyle change
• a move into another business.
Professional lingo about the planning for
this phase talks about Succession Planning.
Succession is often mistakenly interpreted as
just handing over a business or control to a
family member. In fact, succession planning
encompasses all possibilities for moving
out of your business. The main options are
usually selling the business, transferring
control to others in your family, employee or
management buy-out, a structured realisation
of assets or public listing.
The key to having a succession plan that
works is firstly making sure that the needs
and wants of everyone involved have been
taken into consideration. In my experience
the numbers of people who haven’t voiced
their own desires clearly or listened to what
those around them want can be surprising.
business; I want to protect my assets for
future generations; I want to exit with
enough capital to start my next business;
I want to keep my hand in without
cramping the style of the new leader
It’s the time taken to
really get down to
the core issues that
makes it easier to
provide options.
etc; I want to retain some income from
the business.
Once you’ve thought carefully about these
2. What would your ideal outcome be?
three questions, the good news is you’ve
Examples could include: I want to be able
given yourself the power to be able to
to walk away from the business and retire
take the next step and begin the process
knowing it will continue to thrive; the
of planning. Sometimes the next step is to
manager would be prepared to invest in
get your family to think about those same
the business so that I can transition out
questions. We find when we work with
over the next five years.
people on their succession plan, it’s the time
3. What would be the one thing that could
taken right up front to really get down to the
prevent a transfer?
core issues that makes it easier to provide
Examples could include: my son doesn’t
options that will fit their life. Families can be
like the direction that I’ve taken the
complicated but it’s amazing how often I’ve
business and would prefer to start his
been able to reveal or solve problems with
own business; I don’t know if I can afford
clear and honest communication.
to leave and still have a good lifestyle; I
want to sell the business but my spouse
So here are some key questions to ask
wants us to pass on to family; I don’t
yourself. If you can answer these questions
know if my proposed successor has the
you are ready to begin the planning process
skills to continue our success.
with a professional advisor.
For more information, please contact:
Darren Mark
Managing Principal
tel:
03 548 2139
You know what you want - we
know how to help you get it
Our succession planning experts can help protect your future. We've guided many families and
individuals through the process of change when they wanted to step away from their business. We can
help you with this, even if someone else prepares your accounts.
Call us today for a free half hour appointment to discuss succession planning
Nelson: 72 Trafalgar St, Richmond: 20 Oxford St
Audit | Tax | Advisory
6
Commerce Comment
Tel 0800 494 569
www.crowehorwath.co.nz