Moore Thompson accounting firm says succession planning is important
Succession planning is vital to maintaining the stability and success of your business, but it is often overlooked, says Matt Upex, of the accounting firm Market Deeping, Moore Thompson.
It ensures that your customers and your business are taken care of should you decide to retire or suddenly find yourself unable to run the organization.
Many business owners view selling their business as part of their retirement plans, but often fail to put in place a succession plan that will add value to their business during a sale.
It can be difficult to think about passing your business on, especially with the difficulties and complexities you can encounter when creating a succession plan.
However, by creating a clear strategy for natural progression or sudden illness, you can have the peace of mind that your clients’ businesses and the future of the business are in good hands.
Succession planning is a strategy to identify the future leaders of a company and prepare it for all eventualities by developing strategies that facilitate the transfer of power.
Such planning requires careful preparation, well in advance of a planned retirement, transfer or sale, and often benefits from the judgment and support of an experienced advisor who can help owners through the process.
Selling or transferring a business can also create a significant capital gains tax, so owners should be prepared and have a process in place that reduces the amount of tax owed.
At a minimum, most companies should have short, medium and long term succession plans in place that include provisions for sudden illness or death – something that only became more relevant over the course of time. the past year due to the pandemic.
If you are considering leaving your business or want to have a plan in place to deal with an unforeseen event, such as illness or sudden death, our team at Moore Thompson can help.
Over the years, we’ve helped many business owners achieve their retirement dreams, while supporting families and businesses affected by the sudden loss of an owner or key person.