If you are a business owner, succession planning is always important, but can be even more so under unforeseen circumstances, such as the additional challenges caused by the Covid-19 pandemic.
Business succession planning is simply the process of planning for what you want to happen if you (or your co-owner, if you have one) were to die or fall seriously ill. If this happens, family and business partners can be left in a complex situation. In some instances, the business ends up in the wrong hands, or in worst cases can fail. These issues apply to sole traders, partners and shareholders in limited companies, and all of this can be avoided with sensible business succession planning.
When we advise clients about business insurance and succession planning, we start by finding out the most important issues in each specific case. This means understanding both the structure of your business and your aspirations. Once these have been identified and prioritised, we can then recommend a suitable way forward.
In doing so, we can help you to understand:
● The options available and their costs.
● The tax implications.
● The methods of valuing a business.
The death or critical illness of a business owner can lead to unexpected or undesirable consequences for those left behind. Taking the opportunity to plan can help bring into focus what you want to happen to the business after a death or during temporary or permanent incapacity and to identify how best to ensure that this will actually come about.
The Covid-19 pandemic has particularly highlighted how vital a contingency plan is to protect your business against the long-term impact of unforeseen circumstances such as these.
Read our guide below: