BUSINESS SUCCESSION PLANNING
At some point you will decide to leave your business; perhaps you have decided to sell or retire or do something else. Regardless of the reasons, having a succession plan in place will help you smoothly transition from your business.
You can start business succession planning years ahead of time – this can be so useful if there is an unexpected event, and after all you never know what is around the corner. Without a plan your business could be at stake in the future. Early planning also helps you to maximise the value of your business.
Part of protecting assets is also business succession planning, providing you with advice and solutions related to business succession planning and succession law. We prepare shareholder agreements and family and business structures, and advise on potential distributions under trusts. We also provide advice concerning challenges to wills under the family provisions arrangements in accordance with relevant succession legislation.
There are various mechanisms used to give effect to your succession planning solution which include:
- Enduring Power of Attorney – Getting this signed and make sure it covers trusts and companies as well as your personal capacity for financial and health matters;
- General Power of Attorney – Where appropriate, you should have a General Power of Attorney if you are sole Director of your company to make it easier to deal with banks and other companies with whom you contract;
- Insurance – obtain insurance to cover at least part of your business debt level, cash flow requirements.
- Business Succession Agreement –a written agreement with your shareholders or partners that provides for a conditional grant of an option to acquire the balance of the business from you or your family trust as owner of the business share. Insurance can be explored to cover a buy sell agreement so your estate can be paid for your interest in the business.
- Your will should also be crafted to all of your circumstances including business interests companies, shares, trusts and property, on terms that provide the best outcomes for your family.
If you are keen to commence your Business Succession Planning talk to one of the Business and Commercial Lawyers at Aitken today on 02 8987 0000.