Business Succession

forecastingYour options, the potential impacts and achieving a good outcome

Succession planning is a must for all business owners as sooner or later everyone wants or needs to retire.

If you are planning to retire, or realise the value from your business, there are a number of options to be considered, including:

  • Sale to another shareholder
  • Company buy-back
  • Ownership transfer within the family
  • Trade sale
  • Employee buyout
  • Management buyout
  • Flotation
  • Close the business

There are many tax, commercial and emotional intricacies and implications that will arise from each of these routes.

We can provide you with an assessment on the options that are available to you.

We will also give you our view on the best route depending on your objectives to ensure that your tax exposure is minimised and a good outcome is achieved for all involved – you, the family and the potential new management team and/or buyer(s).

Where and when to start?

Our advice is to start the succession planning process early and give it the time that is needed, as opposed to the time that is left.

You may not have all the answers you need at this stage, but by taking some time to go through the initial questions, scenarios and options with us, you will have more of the answers you will need to progress your succession strategy as your contemplate life beyond work and running the business.

5 STEP planning processBusiness succession Oct 19

The 5 STEP planning process we would take you through will help you to consider all the options, decisions and choices you will be faced with >click here to download our guide to succession planning 

1. What do you want and what do you need?

Aim: Safeguard your business and personal assets, future income and your legacy.

2. Do you wish to transfer ownership and/or transfer management?

Aim: Is a transfer/sale viable? You may want to retain an involvement in the business or you may wish to walk away completely; on the other hand, you may wish to do a bit both.

3. What needs to be done to ready and prepare the business for sale/transfer?

Aim: Grow, prepare and nurture: the business, the successors, the family, the new owner and/or managers, and the price you receive.

4. What if things don’t go to plan?

Aim: We will scenario plan with you for a range of potential outcomes: business and personal, and we will help you to prepare alternative strategies if your preferred option doesn’t work out.

5. How will you maximise income now and post transfer?

Aim: Minimising your current and potential future tax liabilities – Capital Gains Tax and Inheritance Tax and investing your financial assets to maximise the returns. See below.

Even if you don’t begin immediately…

You will at least be armed with the facts, the financial impacts and have clearer idea of exactly what needs to be done, by whom and by when to achieve a successful transfer and/or sale.

Inheritance Tax and Capital Gains Tax 

We will advise you on a range of options and issues to consider, including:TPL 2020 21

  • Your income and capital needs in retirement and putting in place asset protection strategies
  • Creating your estate plan and beneficiary mapping.
  • Advise you on minimising any potential CGT and/or IHT liabilities.
  • Making use of trusts to reduce your tax liabilities.
  • Maximising the usage of tax allowances, reliefs and breaks available to you in life and on death, including Agricultural and Business Property Relief and transferring money between spouses, civil partners and other family members.

Our Tax Planning for life guide provides a range of ideas, tips and suggestions on how you can arrange your taxes and manage your financial affairs tax efficiently >read more

Arrange an appoint with Derek Hanlan, Associate Director, Martin Aitken & Co or Scott Lawson, Independent Financial Adviser, Martin Aitken Financial Services Limited to find out how we could help you.