Succession Planning
One indisputable fact in business is that the services of the current owners and key personnel will one day not be available. Whilst the topic is not always pleasant to consider, the risk to family business of ignoring this issue is great.
Lawler Partners has worked with many businesses to ensure they are not at risk from lack of succession planning. Limited planning can threaten the future of the business and consequently the family's wealth, should key owners or personnel be removed from the business for reasons such as ill health or death.
Likewise, many businesses do not have an exit plan which allows for the "orderly" retirement or withdrawal of key owners/personnel. Such a plan not only allows for minimum disruption to the business but also ensures that the goodwill that has been created by the current owners is preserved.
Lawler Partners assist clients to create the comfort and satisfaction which results from addressing succession matters and having the required structure in place well before the need arises.
In preparing succession plans we address such issues as:
- Are children/spouses involved in the business?
- Are children/spouses interested in the business?
- Do the children/spouses have the skills to own and/or manage the business?
- How are other key employees best retained?
- Should the business be managed on a "family first" or "business first" basis?
- How to best balance family emotional issues with business realities eg remuneration, promotion, performance, profit distribution, reinvestment, etc.
- Are the owners affairs in order eg wills, insurance, buy-sell agreements, shareholders agreements, etc?
- Have the taxation implications been considered, including access to capital gains tax concessions?
- Have family asset protection strategies been preserved?
- The role of superannuation in particular Self Managed Superannuation Funds
Our experience in succession planning has shown us that this is an area, which once identified needs to be handled professionally and diplomatically in a structured way.
For more information contact Directors Kylee Dare or Andrew Beattie in Newcastle : Email Kylee ; Email Andrew or Nick Falzon in Sydney: Email Nick
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