The Business Exchange Swindon & Wiltshire Edition 26: Aug/ Sept 2016 | Page 11

FINANCE Do you have a succession plan in place? By Roger Bourlet, Bourlet Consulting Many business owners get so caught up in growing their business they don’t really consider what will happen in the longer-term. And yet, it’s likely to be one of the most important and toughest business decisions you will ever make. Having an exit plan in mind is vital because it has a huge impact on how you operate. E.g. If you run a family business and are planning to hand over the reins to your children one day, it’s important to train them in readiness for leadership. If your ultimate end game is to sell up at a profit, there are steps you can take in preparation for sale to maximise the price and put yourself in a better position as a seller. This includes ensuring your business is ready for any prospective buyer’s due diligence checks that will include legal and financial checks on your accounts, records and contracts. Putting a plan in place will ensure you remain focused on your business goals and that you work towards achieving them. Your exit plan will also be something that any potential investors will want to know. It can have a significant impact on your future financial situation. The success of a family business, or any business for that matter, depends on careful transition planning and on communicating the results of that planning to the right stakeholders at the right time. If you don’t have a succession plan in place, now is the time to consider your exit strategy and start taking the appropriate steps for the future. But what are the next steps to take towards developing a robust and viable succession plan? A useful starting point is to consider the following questions: 1. What are your goals – both business and personal – when thinking about your exit from the business? 2. Do you have a vision for the transfer of ownership and management of the business? 3. Have you identified a potential successor (and are they interested)? 4. If running a family business, have you considered the emotional impact the leadership decisions will have on the family? 5. Is there an estate tax strategy determined for asset transition? 6. Is there sufficient liquidity in the business for a smooth transition? 7. Are you confident there are no ‘black holes’ or hidden financial issues and that all regulatory and legal requirements are adhered to in readiness for due diligence checks? 8. If you are selling up, have you cut out any unnecessary costs? (Buyers will want to see a lean, efficient business) Roger Bourlet, Bourlet Consulting 9. If assets will be transferred, is there a ‘buy-sell’ agreement in place? 10. What is the contingency plan if you die or becomes unable to work before plans are finalised? 11. Have you identified alternative corporate structures or stock-transfer techniques that might help you achieve your succession goals? 12. Has there been a recent business valuation? Any effective succession plan takes time to research, develop and implement. It is a process, not a one-off event. The chances of success are greater the earlier the planning starts and the better the plan is designed. For more information or advice contact Bourlet Consulting on: 01249 700 460 or email: [email protected]. www.bourletconsulting.com Let us take the stress out of managing your accounts We’ll look after your accounts so you can manage your business At Banks BHG Chartered Accountants, we can help remove the burden of managing your accounts giving you more time to do what you do best - run your business. We offer professional help and advice for businesses and individuals that is tailored to suit your needs and budget. Our broad range of services include: Accounts and audits, tax planning, auto enrolment & payroll, VAT, bookkeeping, insolvency and wealth management. Free initial consultation. Call to book yours today 01793 839977 email: [email protected] www.banksbhg.com Vicarage Court, 160 Ermin Street Swindon, Wiltshire, SN3 4NE THE BUSINESS EXCHANGE 2016 11