1. Succession planning is the process
of developing a strategy to smoothly
transition a business from the current
owner to a new owner with minimal
impact on business performance.
Careful consideration and planning of all relevant factors
is vital to ensure the current business owner increases
their business exit value.
A recent Family Business Australia survey identified that
while 81% of all business owners intend to retire in 10
years, less than one third of businesses have a formal
succession plan.
This survey highlights that although strategic succession
planning is of significance and importance, it often does
not receive sufficient attention as the business owner
is focused on current business issues rather than the
longer-term exit strategy.
The most successful business sales and exits are those
that have been carefully and slowly considered over a
period of time, are implemented gradually, constantly
monitored and reviewed, and have realistic strategic
outcomes. These strategies “begin with the end in mind”.
Key considerations
We work closely with clients to ensure they plan beyond
their current business demands, assisting to develop
a successful customised plan that allows a business to
transition smoothly upon the retirement, incapacity or
death of a key people.
The following is a list of the services we offer in developing
a business succession plan.
• Clarification of the business goals
• Identification of key people
• Reviewing management and staff requirements
• Identifying the needs and expectations of current owners
• Assessing the time-frame of transferring
ownership and control
• Tax planning of the exit transactions, including;
• Review of business structure
• Application of small business concessions
• Minimisation of capital gains tax
Collaborative approach
The key to developing a strategic succession plan is to adopt
a collaborative approach that involves each of the client’s
professional advisers.
Our office works closely with the following advisers to
ensure the strategy implemented is ideal from a legal,
financial, and funding perspective.
• Solicitor
• Business Valuer
• Financial planner
• Business Exit & Succession Adviser
• Mergers and Acquisitions Adviser
• Estate planning Lawyer
• Accountant & Tax Adviser inherent in the business
The Importance of Business
Succession and Exit Planning
Your Business Your Way
legacysuccession.com.au

2. Solicitor
Your solicitor will be involved in various aspects of your
exit and succession process, including reviewing and
advising on all types of contract, including the purchase or
sale of the businesses, amongst other legal requirements.
Business valuer
Via a special purpose valuation, your accountant or a
qualified expert will determine the fair market value of
your interest in your business.
This draws a “line in the sand” and provides a clear
understanding of what the business is currently worth,
along with the analysis of the strengths and weaknesses
Financial planner
As part of the process, financial planning becomes
important when assessing the risks within the business
and the impact of the exit strategy.
A full insurance review would be mandatory to ensure
downside risk is minimised, and other financial planning
issues such as retirement planning should be considered
as part of the succession plan, to ensure your personal,
business and financial goals are met.
Once you have exited the business, careful planning will
be required to fund the next stage of your life, be that
retirement or some other change in lifestyle.
Mergers and acquisitions adviser
If your exit strategy dictates that an external buyer will
be sought then a strategy to take the business to market
would be carefully crafted and may include merger and/or
acquisition options.
During the process potential buyers would be identified
and possible synergies explored with emphasis on
optimising these synergies to improve the transaction
value. Your accountant may also be in a position to assist
in this regard.
Estate planning lawyer
Estate planning is paramount to ensure your interest,
control, operation, and ownership of the business is
effectively addressed.
Together with financial planners, complex issues such
as asset protection, family matters, superannuation, and
retirement need to be dealt with as part of the exit and
succession planning.
Accountant & tax advisor
Your accountant knows your business and your position,
and they will work collaboratively with a team of qualified
industry professionals, playing a central role in your exit
planning process.
Specialist advice may be required on the impact of current
structures and pending tax consequences relating to a
prescribed exit strategy, and specialist tax advice may be
critical to ensure your business’ financial objectives are
achieved throughout the process.
Other key issues to consider:
• Can other business partners, management and/or family
succession individuals afford to buy the business?
• Will the remaining business partners and family be able to
work together?
• Are there family members with expectations about
receiving the business?
• Will family members be able to operate the business?
• How would your unexpected death impact the business
• Will your beneficiaries share equally in the business?
• Who will have control of your business in the event of
mental incapacity or unexpected death?
Succession planning statistics
To further highlight the importance of developing a
succession plan, the following are key statistics from a recent
Family Business Australia Survey:
• Family businesses account for around 70% of all businesses
in Australia
• 81% of owners intend to retire in the next 10 years
generating wealth transfer of $3.5 trillion
• 41% intend to pass the business to family members
• 61% of family business owners would seriously consider
selling if approached
• 44% of family business owners are planning to sell their
business
• Less than 30% of businesses have a formal succession plan
We are here to help you develop your Business Exit
and Succession plan collaborate and jointly with above
mentioned qualified industry professionals.
The Importance of Business Succession and Exit Planning (Cont)
legacysuccession.com.au