Moore Thompson accountancy firm says succession planning is important
Succession planning is vital to maintain the stability and success of your business, however, it is often overlooked, says Matt Upex, of Market Deeping accountancy firm Moore Thompson.
It ensures that your customers and company are taken care of should you decide to retire or if you are suddenly incapable of running the organisation.
Many business owners see the sale of their company as part of their retirement plans, but often fail to have a succession plan in place that will add value to their company during a sale.
It can be difficult to think about passing on your company, especially with the difficulties and complexities you can encounter when creating a succession plan.
However, by creating a clear strategy for both a natural progression or sudden illness, you can get peace of mind that your clients’ matters and the firm’s future are in good hands.
Succession planning is a strategy for identifying future leaders at a company and preparing it for all contingencies by developing strategies that aid the handover of power.
Such planning requires rigorous preparation, well in advance of planned retirement, transfer or sale, and often benefits from the judgement and support of an experienced advisor that can assist owners along the way.
The sale or transfer of a business can also create a significant capital gains tax liability and so owners need to be prepared and have a process in place that reduces the amount of tax owed.
As a minimum, most firms should have short, medium and long-term plans in place for succession that include provisions for a sudden illness or death – something that has only become more relevant over the last year due to the pandemic.
If you are considering exiting your business or would like to put a plan in place that deals with an unexpected event, such as a sudden illness or death, our team at Moore Thompson can help.
Over the years we have helped many business owners achieve their dreams of retirement, while also supporting families and businesses affected by the sudden loss of an owner or key person.