Business Succession Planning

Business Succession Planning

Business succession planning is a key element to consider in any commercial enterprise and Partners Retirement Planning and Investment Advisors (PRPIA) can help.

Unfortunately, when a shareholder dies, his share automatically passes into his estate and to his beneficiaries. This sort of major upheaval can result in a conflict of interest between the surviving business owner and the “new business partner” who may choose to sell his/her share.

Having a predetermined plan to transfer ownership of your share of the business can protect your business asset and avoid disputes. We can advise you and your business partners on how to:

  • Develop a business agreement to ensure the sale and purchase of a person’s equity in the business upon retirement, death or disability.
  • Construct and facilitate a buy/sell agreement that identifies in advance the many issues around establishing these agreements including obligations for shareholders to buy and sell, the method of valuation, and insurance policies to provide cash for purchase.
  • Funding solutions and mechanisms to enable a smooth transition and management of the business on exit of a business partner with minimal business disruption.

Good business succession planning enables a smooth transition with less likelihood of disruption to operations. By planning your exit well in advance, you can maximise the value of your business and enable it to meet your future needs.

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Click here to contact us if you would like to discuss business succession planning with one of our consultants.