Succession planning is about devising a strategy to ensure that the owner’s assets passes on to the right people at the right time, and that the right controls are in place when that happens.
Clear timelines for succession are great to identify the amount of time required to train a successor for a smooth transition.
As some successors require more time than others to get a handle on the role and requirements, setting realistic timelines helps set up successors for success and maintain the longevity of the business.
Clarity For The Future
A well-defined succession plan sets out clear expectations and roles for all family and non-family members in the business.
This reduces the potential for future conflicts, as the succession process brings to light any sources of contention or ambiguity.
Estate Planning Considerations
Estate planning will help reduce tax on death, defer tax as late as possible and provide certainty of tax to allow for pending life insurance.
This can protect the company’s assets and identify tactics required to meet the unique needs and circumstances of the business.
When It’s Time To Let Go
Starting the succession planning journey early on provides you with the knowledge that allows you to drive the exit process and determine what’s best for the future of the business.
As you formulate your exit strategy, you’ll be in a better position to let the business thrive for generations to come.