Business Succession

A business succession plan ensures that a business continues to thrive subsequent to the completion of the present controllers “hands on” involvement. It is a vital measure that will safeguard the invested capital against risk.

A succession plan should address issues such as:

• Changes caused by the diminishing day to day involvement of those controllers;
• The corresponding increased role of their successors, being family members or otherwise;
• Whether ownership of the enterprise is to continue following the cessation of “hands on” involvement of key stakeholders caused by their retirement or death;
• The policy for distributing income to family members who do not have a “hands on” involvement in the business; and
• The appropriate method of allocating and or retaining the capital received as a consequence of its disposal.