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Business succession. Here at Argon Law we like it, most business owners hate it. It's true navigating all the options is tricky, but that's where your lawyer and accountant can help.
I'm James Blevin from Argon Law, and I'd like to give you an overview of business succession, and some helpful tips.
A successful transition to new ownership and, potentially, new management, requires time and planning. Of all Australia's family and private businesses, only a third have succession plans, which means a huge amount of business value is being lost.
Generally your options for small and medium enterprise succession are: - A management buyout. - A management buy in, usually in the form of an employee share option plan. - A standard market sale, usually via a broker of some sort. - Some kind of public offering, usually an initial public offering or private equity buy out. - And, finally, a family or generational transition.
To maximise value, your business needs to be ready for any one of these. From a legal standpoint, some things to consider are: - The present legal structure of the business, and whether it's right for effective succession, including taxation implications. - The key assets, liabilities and contracts of the business. - The business' key staff; and - Premises ownership for all operating locations.
Once you're in the throes of succession, some of the ways we can help include: - Establishing shareholder or partnership agreements. - Updating or establishing new company constitutions. - Updating employment contracts. - Effecting employee share option plans, in conjunction with your accountant. - Reviewing your insurance coverage for adequacy; and - Estate planning beyond your business, including wills and personal estate management.
I know we've barely scratched the surface, so I invite you to get in touch to discuss any or all of your business succession and estate planning needs.
Do you require legal advice? Contact Argon Law via the links listed below.
