Do you have a succession plan in place?

Don’t leave it to the last minute to plan for the next generation.

At Ling Phipp we can advise businesses in the Nottingham area on business exit strategies. Here are some thoughts on business succession planning...

In all successful businesses the issue of succession from the current owner to the next generation inevitably comes up, but all too often business owners wait until the last minute to form a proper succession plan - by which time many options are already closed.

Once the business has survived the start-up stage, the founder should begin giving consideration to succession, regardless of his or her age.

Elements of a successful succession plan

A good business succession plan should mean that you can:

  • ensure that control of the business is transferred to the appropriate people according to your wishes
  • ensure that your chosen successors take over the business in a smooth and orderly manner
  • avoid or reduce any tax on the change of ownership
  • continue to provide ongoing and sufficient financial security for you and your family

Elements of a successful transition

There are some essential elements to ensuring a smooth business transition:

Commitment
The founder must acknowledge that the business has to continue in order to create opportunity for those to come. Once he or she has committed to this fact, this commitment must be communicated throughout the business.
Investing in the right people
Recruiting and keeping good people will always pay dividends and is a key item in succession planning, because when you have the right people, selecting a successor or successors becomes easier. Investing time in developing your family members or other management team members and allowing them to exercise authority and control is key to a smooth transition. By empowering a broad range of key people, the selection process is simplified and options are enhanced.
Implementation
Having come this far, the founder should announce his or her future plans. This gives key management people and family successors a clear path to the future and a definite goal. In implementing the succession plan, the founder must be ready to step aside and allow his or her successors to take over. The founder needs to be prepared to let go of the reigns and to take on new challenges in retirement, knowing that his or her personal financial future is secure.

A succession plan, or any form of exit strategy will require careful planning. Besides the legal complexities, steps must be taken to ensure that you minimise the tax liabilities and maximise your financial gains. These are areas in which we have experience and expertise. Call us if you would like further guidance.

If you are in the Nottingham area and are looking for professional advice on business exit planning, including succession planning, contact Ling Phipp.

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About us

Ling Phipp was founded in 1974 and nowadays has two partners, five managers plus trainees and support staff.

We serve clients in the East Midlands and all over the UK. Our out-of-town location, with easy parking, close to the M1 junction 25 (Nottingham/Derby - A52), is very convenient.

Company details

0115 949 6838

Ling Phipp, Cliffe Hill House, 22-26 Nottingham Road, Stapleford, Nottingham NG9 8AA


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Registered to carry on audit work in the UK and Ireland and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. Details about our audit registration can be viewed at www.auditregister.org.uk, under reference number 6424855. This is the firm number provided by the Institute of Chartered Accountants in England and Wales.