Succession Planning for Family Companies
Most Accountants and Solicitors are well placed to advise on succession planning. However, life does not always run to plan and we can work alongside your adviser, but at a commercial level, which asks questions such as:
- What if family members do not want to run the business?
- Are you prepared to sell to non family management or employees?
- How should they be groomed to buy in?
- Can they afford to do it?
Such questions may have a fundamental impact on your retirement plans.
In order to recover your investment you may need to sell the business. What is it worth? Will anyone buy it?
It doesn't always follow that your business has any intrinsic value outside the family, or your current workforce. If this is the case you need to plan well in advance ...Are you prepared?
Your business may be solvent on an ongoing basis, but what if it has to cease trading? We have seen many situations where companies have been forced into liquidation because prospective buyers do not wish to take on board contingent liabilities, such as onerous leases or employee claims.
We can advise at a commercial level on how you can legitimately place valuable assets outside the reach of your creditors should you not be able to find either a buyer or a buyer willing to meet your price. It may be that the trading company will need to be liquidated in due course with your valuable assets sitting in a separate company free from these onerous liabilities.
If planned far enough in advance this will provide the necessary funds for your retirement.