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Business Succession

Succession Planning

According to a recent national survey, over 90% of SME owners do not have a succession plan in place. Almost as startling, about 75% do not have a exit plan in place, even though they have been in the business many years.

On top of this, business owners are failing to adequately plan for retirement with many relying solely on their business assets with no other superannuation arrangements in place.

Of the businesses surveyed, the biggest barrier to completing a plan was not being able to find a successor, but to agreeing on a valuation, or knowing how to get a plan started.

Succession planning can be a complex and daunting prospect for many businesses, and tax implications from an equity gift can present significant challenges. The matter should not be treated lightly however – the way in which succession plan is managed can greatly impact the owners, employees and the overall business in general.

A good succession plan should also cater for the unforseen event whereby an owner is prevented from working at short notice, in which case the succession needs to be accelerated to preserve the business’ value.

Exit Plans

32% of businesses surveyed planned to simply close their business down on retirement, thereby not realising the full wealth created from their business.

Many business owners were also unaware of the full tax concessions available for small businesses upon sale.

Business owners need a comprehensive and documented exit strategy. Having a plan for exit is an important factor in determining the right strategy and make the right investment decisions for the business. The rules are complex and taking advantage of the provisions requires significant planning in advance of the business sale.

It’s Never Too Early

SME owners traditionally have limited time in which they can accumulate personal wealth for their retirement. Retirement planning should start in the first years of business life, not the last. Not sure where to start?

Simple. Dial 9208 1333 and ask to speak with one of our Business planning specialists. Nexus Wealth Management is the leading provider of Business Succession solutions to SMEs in Western Australia.

We can explain the steps, the time frame and typical costs involved. We will also liaise and co-ordinate with your existing accountant and solicitor if required, so as to give you a single point of accountability to project manage the end result to your satisfaction.

So, give us a call – you will be glad you did.

*surveyed via an online quantitative study with more than 200 responses from SME businesses across all Australian states.

Brian Woods & Peter Campbell, Nexus Wealth Management Pty Ltd T/A Nexus Wealth Management Authorised Representatives GWM Adviser Services Limited Australian Financial Services Licensee Register Office at 105 - 153 Miller Street North Sydney NSW 2060 Copyright © 2017 Nexus Wealth Management All Rights Reserved