Plan­ning your fu­ture

EADT Suffolk - - Inside -

Ex­pert help to plan for the ma­jor mile­stones in your fam­ily’s life

Q) I am hand­ing my busi­ness over to a suc­ces­sor, when should I start think­ing about suc­ces­sion plan­ning?

A) As early as pos­si­ble. You want to en­sure there is a well thought-out plan for a smooth tran­si­tion to your suc­ces­sor whilst ob­tain­ing the best out­come for you, be it max­i­mum sale value, a reg­u­lar “pen­sion” in­come or sim­ply en­sur­ing the fam­ily busi­ness con­tin­ues to flour­ish down the gen­er­a­tions. In the ma­jor­ity of cases, a suc­ces­sor will be a fam­ily mem­ber, so it’s im­por­tant to con­firm with them in ad­vance that it’s what they want too. If they don’t, you will need time to ex­plore your other op­tions. Q) I am think­ing about sell­ing my busi­ness, when is a good time to sell?

A) In an ideal world, when your busi­ness is on the up with fur­ther growth avail­able. That stage in any com­pany’s life is hard to pin­point. As­sum­ing no ex­ter­nal fac­tors are forc­ing a sale, the de­ci­sion to sell of­ten has per­sonal life­style fac­tors be­hind it. You may want to spend more time with your fam­ily, or you’re ready for re­tire­ment and want to re­lease some liq­uid equity; maybe ill health has caused you to think about sell­ing. Q) How do I find out how much my busi­ness is worth? A) Sim­ply put, a busi­ness is worth as much as some­body is pre­pared to pay for it and what a ven­dor is will­ing to ac­cept. A busi­ness that is sub­ject to a num­ber of bids is likely to achieve a higher price, as the price can be in­creased due to ‘com­pet­i­tive ten­sion’. There is a lot to con­sider when valu­ing an in­de­pen­dently owned com­pany that re­quires spe­cial­ist ad­vice.

Kate Baines, Man­ager, Larking Gowen Cor­po­rate Trans­ac­tions

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