Planning for business succession is an important part of successful business management. The succession planning process facilitates crucial decisions to be made early, enabling a smooth transition when the owner or major equity shareholder(s) leave a business, as part of a planned retirement or an unexpected illness or death. It is wise to establish a Succession Plan early in the establishment of a business to limit future disruption to business operations and maximise the value of the business.
A succession plan needs to be developed with a realistic timetable and clear, measurable milestones. It will need to take into account commercial, taxation, estate planning and legal issues, along with business management decisions in the best interest of the entity and stakeholders. Depending on the size and complexity of the business, a five year plan to implement an effective succession is likely to be required.
Murfett Legal has extensive experience in advising on business succession planning and preparing all related legal documentation, including:
Murfett Legal works closely with clients and their key advisors including accountants, financial planners, bankers and insurance advisors. This ensures Business Succession arrangements are optimised for the best legal, financial, tax and insurance purposes.
Business Succession Planning is not an overnight or ‘one-off’ process, rather it’s a continuous part of all businesses from the initial formation through to multi-generational, continued ownership of a business. We advise clients at each phase of their business and place their specific needs, personal values and desired goals as central to the advice we provide when drafting Business Succession documentation
Our Business and Equity Succession team has extensive experience working in pro-active and ongoing advisory roles. Our clients enjoy the confidence that goes with knowing their objectives will be fully understood and properly implemented.
A succession plan will allow you to prepare for the continuity of the business and its profits in the unfortunate circumstance of the owner or other key individuals leaving through illness, accident or death.
To ensure those risks are mitigated, succession planning starts with the legal interest of each owner in the business and their rights. It should also include provisions to give the continuing owners the rights to buy the interests of the partner who has left and the certainty of a pre-determined price for their share.
Customer satisfaction is the benchmark of success here at Murfett Legal. Contact us today and our lawyers will be in touch to fully understand your situation in order to provide clear cut solutions for your needs.