WHAT IS SUCCESSION PLANNING?
We all end up moving on from our business at some point. Exit and succession planning is about maintaining control over how and when you leave and on what terms.
Succession and exit planning means you can:
· Minimise your tax
· Secure your future income
· Provide a smooth transition for your team
· Maximise your retirement /exit pay-out
MOVING ON FROM YOUR BUSINESS
You only get to leave your business once, so it pays to get it right. There are many ways to exit and it can be useful to have someone guide you as to which will deliver the best result.
Options vary in terms of complexity and payoff and include;
· Management buy-out
· Employee share scheme
· Selling to competitors, suppliers, customers or trade buyer
"Having an exit strategy is the ball game for anentrepreneur…The idea is simply to build, grow and sell-whether sell means list pass on to family, sell to employees or trade sale there must be a strategy" - Michael E Gerber, the E- Myth
EXIT PLANNING MEANS YOU DON’T WASTE YOUR HARD WORK
Developing an exit or succession plan means you have every aspect of your business mapped out as to how it will get you to your desired exit outcome.
Succession planning is making decisions about who will lead your business and exit planning, who will own it and those decisions mean you can take full advantage of the tax system to minimise what you must pay as well as giving your team the benefits of a smooth transition.
Having a business exit plan will not only enable you to attract a higher sell price, it will also mean you can minimise tax on the proceeds.
As part of your plan we will advise you on how to use staged payments, superannuation contributions and tax concessions so you retain as much of the proceeds as possible.
MINIMISING CAPITAL GAINS TAX
Capital Gains Tax (CGT) is one of the most important considerations in your exit plan. CGT is the tax paid on any gains you receive when you dispose of an asset, and that means if you are not careful when you sell your business you might be up for a large bill. By developing an exit plan all the taxation issues are identified early so steps can be taken to minimise any liability.
BEST TIME TO START EXIT PLANNING
For other business owners concerned that it’s too late to exit, think of it like trying to sell your house quickly. There are simple things you can do to increase the value of your house which don’t require you to spend a lot of time or money.
BlueKite Capital specialise in providing Accountants with a succession planning model to maximise revenue and increase their exit strategy.