Effective business succession planning requires a 3 to 5 year outlook. Far from a short-term transaction, it involves a long-term conversation around future goals, implications and potential opportunities to ensure your business is ready for transition when the time comes. Whether the journey for your business involves maximising its current potential, extracting value for the owners or developing future leaders, it is important to properly plan and provide for these outcomes well in advance.
If you are a business owner or operating a family business, your business asset often forms a significant portion of your wealth. A well-considered succession plan is crucial for ensuring that value is delivered to the right people, tax implications are managed, the business legacy is realised and long-term leadership health is maintained.
In some cases, the business successor may already be known. However, a large segment of middle market businesses in Australia are owned by persons who are on or nearing retirement age and have no clear successor or plan in place. When established early, a steady and progressively managed transition will provide certainty and assurance to you and to future generations in an environment of continued growth and compounded wealth.
Succession planning is also an important conversation in the context of wider family circumstances. Pitcher Partners also offer wealth transition and succession planning for families.
The benefit of a 3 to 5 year succession outlook
- Identify the need to extract value from your business in the short to medium term
- Identify the benefit to maximise capital value of your business in the short to medium term
- Assess the leadership structure in line with your preferred medium-term involvement in the business
- Establish leadership development strategies for in-house capability
- Identify the long term benefits you want from your business, in capital or legacy
- Secure enough capital for your future plans
- Ensure your business structure and transfer strategy is profitable, tax effective and commercially realistic
Our experienced advisors will guide you through each stage of succession planning, including:
- Proprietor goals and outcomes assessment
- Succession target assessment
- Next generation preparation and development programs
- Family Advisory Boards and Family Charters
- Business valuation
- Business value maximisation advice and support services
- Equity tax, structuring and ownership transition advice
- Employee equity plans
- Business finance
- Buy and sell agreements and insurance
Pitcher Partners understand that the most robust business succession plans are carefully considered 3 to 5 years in advance and built strategically over time. Therefore, we take a personal partnership approach with our clients, not a transactional approach. Working closely with you over the long term, we help you to ensure that every factor is addressed and actioned to achieve the best outcome possible.
Our expert advisors will help you to prioritise which conversations and actions are required to support your medium to longer term goals. Specialising in middle market businesses, our team has a deep understanding of the challenges that may arise in your succession planning and can offer proven strategies to help you overcome them.