WHAT IS A SUCCESSION PLAN?
When planning the future of your business at the time of a sale, a succession plan is considered to be a concise action plan laying out the steps needed to achieve your goals and the best ways to secure the best long-term result for you and your company.
The process consists of creating a clear and realistic timeline, with specific milestones, that you can follow to ensure everything is lined up to result in maximum levels of success at the point you have scheduled for selling your business.
As every business is different and succession planning involves different things for every business owner, it's key for you to consider what you want to get out of the process. It's important to consider what type of exit you want? What you want your turnover goal to look like before exiting your business? And do you have a goal to create a pathway for your existing employees?
You may want to identify any skillset gaps in your business before you exit, or even focus on strengthening your customer base ready for your business' long-term growth.
GS Verde Group are the business-focused experts in getting deals done. With law, finance, tax and communications teams, the Group offers the necessary multidiscipline expertise to support each aspect of a succession plan.
By watching our 'Succession Planning' webinar, you will gain valuable and extensive insight into how to build a strong, comprehensive exit strategy detailing all actions necessary to sell the business in a way that achieves your aims.
Webinar Countdown
WEBINAR TALKING POINTS
SECTION 1: PREPARING TO SELL YOUR BUSINESS
- The basics
- How can business owners extrapolate their current situation into a plan?
- How should business owners approach financial planning?
- When should business owners decide what type of sale they want?
- What are some other aspects business owners should think about?
- What level on contingency should be included?
SECTION 2: THE TRANSACTION
- What are the different considerations business owners need to give to the different types of transactions?
- How do you find a buyer that aligns with your plan?
- How can business owners prepare for an EOT transaction?
- Which transaction types have the most efficient tax options?
- What happens when the transaction doesn't go the way intended in the plan?
- Are there any 'last minute' actions that can improve value/outcome?
SECTION 3: POST-TRANSACTION
- After completion, should the plan extend to post-transaction?
- If a business owner has used a sale as a 'partial exit', what should they do to reach full exit?
- How can business owners manage the proceeds from the sale?
- How can business owners use the proceeds to start another business?
- What to do if someone changes their mind from the plan?
- What are the potential outcomes of a transaction that hasn't had appropriate levels of planning?
PREPARING TO SELL YOUR BUSINESS
Selling your business can be the result of many life-changing decisions from retirement, leaving a family legacy or moving onto your next venture in your career.
During the process of selling, you will need to consider the various aspects of the sale including financial objectives, your business's brand, your clients and your employees. Depending on what type of business sale you choose, these areas will be affected differently so succession planning is the only way to make sure the execution of the sale goes smoothly.
The importance of succession planning to exit your business cannot be understated. The rule of 'fail to prepare, prepare to fail' is an important one to follow to ensure you exit your business in the best way possible.
Do you know what type of sale you want? Do you have a certain financial goal you want to reach before exiting your business? Have you thought about how long you want to remain in your business or want to find ways to improve your business before you exit?
Our 'Succession Planning' webinar will guide you on how to build a strong, comprehensive exit strategy to ensure your business' long-term success and growth.
ABOUT LANSDOWN PLACE
An experienced Bristol-based firm of Private Wealth Consultants that offers a comprehensive range of financial services, Lansdown Place Wealth Management Ltd are experts in all areas of financial planning including investment, retirement, estate and tax.
In this 'Succession Planning' webinar, both GS Verde Group and Lansdown Place Management Wealth Ltd will offer their expert guidance on how to prepare to sell your business along with the transaction and post-transaction stages of succession planning.
Trade Sale
Management Buyout
Employee Ownership Trust
Private Equity
A trade sale of a business is a popular means of exit, often to a trade buyer operating in the same industry. The disposal typically entails a company's shares or assets either in whole or in part. The acquisitive party may be a strategic buyer looking to grow their own business through market share acceleration, to expand regional footprint, or the addition of new services or products.
A management buyout (MBO) is when a management team collaborates to buy either a total or a majority stake in the business they manage; buying out the current owner and taking control. When deciding how to sell your business or begin your succession planning, an MBO can be a viable option for businesses of any size or in any industry.
Employee ownership can be a way of selling your business or act as a route to a partial exit as part of business succession plans. To become an employee-owned organisation, an Employee Ownership Trust (EOT) is often set up, which means that employees acquire a majority stake in the business as a group. This is held on trust, with employees then becoming involved in decision-making, strategy and direction via a committee.
A private equity sale involves selling shares of a non-publicly listed business to an investor, in exchange for capital investment. Following this, the investor, whether that be a Private Equity firm, angel investor or Venture Capitalist, can take an active, non-executive role in the business. This could involve utilising their skills and connections to propel the business on its growth strategy.
