BUSINESS SUCCESSION PLANNING:
From Foster Lee - Chartered Accountant/Tax Practitioner Cairns:
A Business Succession Agreement (“BSA”) is a vital tool in any business to ensure that the business (and its owners) are fully protected in the event of the involuntary departure of an owner or the occurence of an “unexpected” event. Do you have the “spare” funds to pay out that person?
Planning for the day you leave your business is a valuable “investment”. Whether you decide to sell up, retire or have to get out of business due to health reasons, it's important that you spend the time with your family and/or your business partners and plan what you're actually and realistically going to do. A good succession plan 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 future needs. Creating a strategic succession plan that is attainable - this means setting a realistic timetable and measurable milestones along the way and sticking to them. Please see your solicitor about this asap! If you do not have a competent solicitor, I can definitely refer you to one.