Succession planning is a concept which is not widely understood in South Africa and often confused with Estate Planning. Succession Planning itself has different meanings depended on circumstances, in a business environment succession planning can be about the transfer of management or the transfer of ownership, whereas in a family it is about the transfer of Value systems

1. 1
Succession Planning
A Brief Introduction
Prepared by
Presented by: Christo W. Meyer

2. 2
Uchi, What?
The basic concept of Uchi in the Japanese language revolves around dividing people into in-groups ( uchi) and out-groups (sato).
This is a vital distinction to be made in the succession planning process, the differentiation between the inner circle (core) and the
outer circles. In other words who will benefit directly, who will benefit indirectly and who will not benefit at all.
At Uchi Group we focus on multi-jurisdictional succession strategies, incorporating succession planning for both financial and
human capital to implement and manage multi-generational planning structures, that will assist families to transfer wealth, values
and the family's core strengths from one generation to the next. These plans are rolled out by implementing family governance
structures in order to promote family harmony.
Uchi Group specialise in Multi Jurisdictional Advisory Services, in the following focus areas:
• Succession Planning
• Multi-Jurisdictional Structural Advice and Implementation
• Multi-Jurisdictional Estate and Asset Protection Planning
• Trust advisory services (Onshore and International)
• Family Office Advisory Services
• Philanthropy Planning
Uchi Group has built a global network of professionals with a passion for multi-jurisdictional fiduciary services, and through our
network, we offer an array of fiduciary services with in the following core areas:
• International Fiduciary Services and Tax Planning
• Family Office Advisory Services
• Philanthropy Planning throughout the world
• Succession Estate Planning
• Late Estate Administration
• Multi-Jurisdictional Structural Advice and Implementation
• South African Trust establishment,
• Acting as Independent Trustees, and
• Trust Administration.

3. What is Succession Planning
Succession planning is a concept which is not widely
understood in South Africa and often confused with Estate
Planning.
Succession Planning itself has different meanings depended on
circumstances, in a business environment succession planning
can be about the transfer of management or the transfer of
ownership, whereas in a family it is about the transfer of Value
systems

4. What is Succession Planning
It is important for all business owners to appreciate that they cannot run their
business forever, and thinking about who is going to run the business next is
something that can be both challenging and rewarding.
Succession planning focuses on successful business owner planning for the
future. It is essentially a planned process to allow a business to continue
growing into the future with the right people in charge, at the same time allowing
the the current owners to exit and maximise the value of their business.
For family businesses, determining whether children are ready to run the
business, whether they are the right people to run the business and whether
they actually want to be involved, are all part of the process.

5. What is Succession Planning
It takes time to build a successful business.
It also takes time to pass it on.
Although succession planning can be simply defined as the process of
transferring the control and ownership of a business, developing and executing
a succession plan is not nearly so simple. As the owner of or investor in a
privately held business, you need to answer some hard questions.
The first two questions that needs to be answered:
– how long do you want to stay in the business? and
– How sustainable is the business model going forward?

6. The Process of Succession
The Basic Process of Succession Planning:
• Establishing your goals and objectives
– Values and Vision – shared or distinct?
• Establishing the value of your company
• Selecting an appropriate structure for the succession
– Understand Tax Consequence
• Develop a Plan - Goal Setting – What and Why?
– Identifying and incentivising potential successors
• Plan the Plan – Strategic Planning – How and What and When and
Where?
– Identify and engage Advisors – Accounting, Tax, Legal, Financial
• Do the Plan – Implementation
• Scenario planning
– Have a Contingency Plan for the unplanned - unanticipated health problems - death -
changes of heart

7. Succession Planning DO’s
• Do think of succession planning as a process rather than an event.
It does take time and effort.
• Do start planning now. The earlier planning begins the great the
number of options.
• Do keep the big picture in mind (long-term, strategic direction) along
with a positive attitude
• Do become educated and an active participant in the planning
process
• Do discuss personal and family goals – open information is best.

8. Succession Planning DO’s
• Do continue to discuss and generate ideas throughout the process.
Be creative.
• Do assemble a team of professional advisors you can trust and work
with them (lawyers, accountants, bankers, etc). Ensure they fully
understand what you want.
• Do consider the advice and ideas of others – although they may
have a different perspective, it is this advice that provides a well
rounded succession plan.
• Do consider the tax implications, but don’t over emphasize them as
the driver of the process.

9. Succession Planning, DONT’s
• Don’t procrastinate – start talking about succession now
• Don’t be afraid to ask questions, and listen carefully. You may not
like all the answers, but that is part of the Process
• Don’t assume you know how others feel about the process or what
they want to achieve through the succession planning process.
• Don’t be afraid to share responsibilities during the planning process
• Don’t define your life as the business. Life is much broader,
including family and friends, leisure, sports, hobbies etc
• Don’t rely on just one professional advisor. While each individual is
important, one person cannot possibly provide all the answers to
everything. We need to work with your advisors.

10. Always remember that Succession planning it is
a challenge, but
the hardest part is to get started.
christo@uchigroup.com
www.uchiadvisory.com