What is Business Succession Planning?
What is your business worth? Have you considered what would result if you or a co-owner of your business was unable to continue in the business? This issue is often overlooked by business owners, yet it occurs in over 40% of businesses with four or more co-owners.
The types of issues to be considered by business owners can seem daunting and include:
- Arriving at a suitable valuation for the business and ensuring all parties are aware of and comfortable with the valuation method
- Ensuring there are adequate funds for the purchase of the outgoing/deceased owner’s share by the remaining owners – perhaps through insurance
- Dealing with the results of any shortfalls of funding.
These matters are able to be solved with careful consideration. At Small Myers Hughes, we pool our specialised knowledge in this area with that of other experienced practitioners in the areas of financial planning, accounting and insurance, to ensure our clients not only receive the right advice, but are also comfortable with the process and fully aware of all of the issues.