Let MGI's Business Advisors Take The Pain Out Of
Business Succession Planning
Managing the transition of a business from one generation to the next is something most business owners put low on the list of priorities. With so many of the day to day tasks associated with managing your business to juggle, succession planning i.e. how and who you will hand it over to is often assigned to the ‘too difficult’ basket.
Unfortunately the trigger for succession planning to happen in many businesses is usually an unforeseen set of circumstances such as an illness or the death of a key leader within the business. This is when an already emotional situation can lead to disputes, challenges and a more stressful scenario than there actually needs to be.
At MGI we have a team of business advisors and consultants who are highly skilled and experienced in helping you navigate planning the future of your business without you at the helm. We have helped so many businesses plan the transition of its leadership, whether it be within a family or through a business sale.
There is a plethora of important considerations when it comes to exit planning and business succession planning including the key roles and key positions in the business, how the business is structured for tax purposes, the legal implications, financial plans, equity or asset sale, and estate planning.
MGI’s succession planning services will help you plan the future of your business in a calm and considered way. We will help you develop an exit plan that gives you peace of mind about the long term stability of value of the business you have invested so much effort in building.
An Effective Succession Plan To Give You Peace of Mind
The long-term success and sustainability of a business takes careful thought and planning and investing in effective succession planning will alleviate longer term stress. The added benefit to this is that the very actions taken in the succession planning process are often the same actions that will improve the performance of the business. For example, by empowering senior leaders within the business, the business owners can spend more time working on the business, rather than in it.
Having potentially difficult conversations now with family members can help you avoid knee jerk reactions when the pressure is on to hand over the reins which can often lead to family disputes.
It also allows you to sensitively manage the emotional aspects of the process. Taking account of the human side of the succession planning and having a process to deal with it is critical to your exit strategy and the effectiveness of the final plans.
Creating an effective plan may seem quite a daunting task, especially when it involves getting the buy-in of all stakeholders but if you break it down into bite sized chunks and set realistic deadlines for yourself, it can prove to be one of the most valuable exercises you will undertake for your business.
Succession Planning Services We Can Help With:
- Business Valuations
- Business Sales Support
- Succession Plan Development & Implementation
- Tax Planning and Structuring
- Superannuation
- Wealth Management
- Business Planning
The Benefits Of Early Succession Planning
Realisation of Business Value
A well-planned succession strategy can help ensuring the value of the business is fully unlocked for the current owners, who often rely on exiting from the business in order to fully fund retirement or another business venture.
Smooth transition
A well-planned succession strategy can help ensure a smooth transition of leadership, which can prevent disruptions in the business' operations, maintain business continuity, and minimise the risk of loss of customers, revenue, and market share.
Retention of business knowledge
An effective succession plan can help retain the collective experience, skills, and expertise of key personnel, by transferring it to the new leaders. This can help maintain consistency, improve decision-making, and reduce training costs and ‘down-time’.
Talent development
Succession planning can also be used as a tool to identify and develop high-potential employees who can fill key leadership positions in the future. This can help motivate and retain top talent, improve employee engagement and loyalty, and create a culture of excellence.
Risk management
A well-executed succession plan can help mitigate risks associated with the loss of key personnel, including the loss of intellectual property, customer relationships, and reputation. It can also help reduce the impact of external factors, such as economic downturns or industry changes.
Financial stability
A successful succession plan can help ensure the financial stability of the business by providing a clear path for future growth and profitability. This can help attract and retain investors, secure loans, and maintain a competitive edge in the marketplace.
