Succession planning
If all goes well, you intend to retire, sell your share of the practice and live off the proceeds. But have you planned for who takes over and how the business evolves?
Succession is important for everybody. It is important to maintain a viable business on an ongoing basis but also for retiring partners to recover some of that investment for the great deal of work which they have put into the business.
For new people joining the business as owners a clear succession plan offers security and a chance to develop their interests and make a difference.
Succession planning is not just about the retiring partner’s perspective, it is about genuine planning of succession for the business and its future.
Many of the problems arise from things that could easily have been sorted if a discussion had been held a year or two earlier. So what would these potential problems be – and do any of them ring a bell with you?
- No partnership agreement or no shareholders agreement
- Unclear agreements open to different interpretations
- No planning or inadequate planning
- Inadequate or declining profits in the business where no action has been taken
- Overcapitalisation
- Poor valuation process for assets
- Leaving it all until the last six months!
Anval can help you get your retirement planning and succession planning right.