Do you have a succession plan in place?

Don’t leave it to the last minute to plan for the next generation.

At MRO Accounts we can advise businesses in the Hemel Hempstead area on business exit strategies. Here are some thoughts on business succession planning...

In all successful businesses the issue of succession from the current owner to the next generation inevitably comes up, but all too often business owners wait until the last minute to form a proper succession plan - by which time many options are already closed.

Once the business has survived the start-up stage, the founder should begin giving consideration to succession, regardless of his or her age.

Elements of a successful succession plan

A good business succession plan should mean that you can:

  • ensure that control of the business is transferred to the appropriate people according to your wishes
  • ensure that your chosen successors take over the business in a smooth and orderly manner
  • avoid or reduce any tax on the change of ownership
  • continue to provide ongoing and sufficient financial security for you and your family

Elements of a successful transition

There are some essential elements to ensuring a smooth business transition:

Commitment
The founder must acknowledge that the business has to continue in order to create opportunity for those to come. Once he or she has committed to this fact, this commitment must be communicated throughout the business.
Investing in the right people
Recruiting and keeping good people will always pay dividends and is a key item in succession planning, because when you have the right people, selecting a successor or successors becomes easier. Investing time in developing your family members or other management team members and allowing them to exercise authority and control is key to a smooth transition. By empowering a broad range of key people, the selection process is simplified and options are enhanced.
Implementation
Having come this far, the founder should announce his or her future plans. This gives key management people and family successors a clear path to the future and a definite goal. In implementing the succession plan, the founder must be ready to step aside and allow his or her successors to take over. The founder needs to be prepared to let go of the reigns and to take on new challenges in retirement, knowing that his or her personal financial future is secure.

A succession plan, or any form of exit strategy will require careful planning. Besides the legal complexities, steps must be taken to ensure that you minimise the tax liabilities and maximise your financial gains. These are areas in which we have experience and expertise. Call us if you would like further guidance.

If you are in the Hemel Hempstead area and are looking for professional advice on business exit planning, including succession planning, contact MRO Accounts.

What our clients say:

“Working with Melody is an absolute pleasure. She handled my accounts with complete unflappable professionalism and navigated her way thought the HMRC hoops. In my first year of business I was employed, unemployed and self-employed, all within 12 months - not a simple situation! And she does it all with a smile :)”

Thank you Mel, you let me get on with my job confident that my accounts are in safe hands

Dee Fagg, 3D-VA

“I have known Mel for 6 months and in that time she has managed to totally organise my accounts and make me company be more efficient, what used to take me a long time, takes her a very short time, she makes it seem easy and is able to make me understand what I should be doing and the easiest way of doing it! My accounting life is now so easy not a time to be dreaded!! Thank you Mel!”

Claire Lee, Venue Queen Ltd

“MRO Accounts have been very helpful in the early stages of getting my business started, with clear advice and guidance that has really helped me sort my finances out. MRO Accounts have always been very prompt and speedy in dealing with any of my queries, which is very important to me and gives me every confidence that I am dealing with professionals. I wouldn't hesitate to recommend their services.”

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