Business Succession and Transition / Growing or Going

2009 by Nexus Wealth Management

WHY (the challenge)

Nexus was approached by a local WA Building Contractor company to help with intergenerational planning and provide a business succession and transition strategy. The company’s’ goals and objectives were :

  1. The introduction of the owners son into the business as a shareholder with increasing responsibility over time for the
    running of the company
  2. The exit of the aging owners as existing shareholders from the business, with plans for a complete exit over within 5 years

Case StudyHOW (our tactics and strategy)

In order to identify, construct and deliver high level advice, our advice process covered 4 major stages where we were able to confirm actions and ensure accountability from all parties, resulting in the best outcomes for our clients.

Nexus offered a business succession solution where relevant responsibilities were outsourced to Nexus which included liaising, facilitating and educating with and between all necessary parties to ensure the above objectives were met.

Nexus liaised with the businesses accountant and lawyer to establish appropriate sale documentation based on an agreed business value which factored in personal and company tax implications. A directors meeting was facilitated as well to address the asset protection between personal and company assets as well as any other issues that needed attention. The shareholders were educated about the fiduciary responsibilities of being a company shareholder. A comprehensive needs analysis of the business was performed.

Nexus offered a complete Personal Financial services advice and strategy in relation to the following key areas;

  • Financial Management – Cash Flow – Entity structures – Taxation
  • Risk Management – Personal and business protection
  • Investment Management
  • Wealth Creation – Cash, Property and Shares
  • Debt Management – Effective and efficient disentanglement of assets and debt restructuring
  • Estate Management – Personal Wills and EPOA

WHAT (the outcome)

Today, the new Directors have peace of mind in that they have a robust business succession plan and that we continue to help them
so that they can face the future with confidence. The company has come away with us understanding what’s important to them,
being able to put all of their issues on the table, receive advanced strategy considerations, with an agreement and documented
action plan.
They have also been able to grow wealth outside of the business with the efficient handling of their debt.

Red Ready Responsible
This is based on a real client experience. Names and details have been changed. This advice may not be suitable to your requirements. Please consult with a financial planner to discuss your requirements

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