Succession plans: keeping it in the family
If you are thinking of a possible future exit, consideration needs to be given to:
- Potential acquirers
- What preparation is required
- How to maximise sale proceeds/investment realisation
- Key contracts which may restrict change of ownership
- Asset ownership structures
- Superannuation and will considerations
- Valuation issues
- Pre-emptive rights and drag along and tag along rights.
The exercise in business succession planning is a strategic—and at the same time emotional—event for a family. It requires great skill and experience to advise on the most appropriate plan. You have a vision for your business to take it forward, and to assist you to achieve that vision it is important to work with people who understand and share your business outlook. You will need advisors with legal, accounting, valuation and tax experience to develop and implement an effective plan that will survive death and divorce and stand the test of time.
— Murray Landis is a Partner at Middletons (www.middletons.com.au), a full service, commercial law firm.
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