How do I plan for succession?

A single business owner can limit the value of the business where the knowledge of suppliers, internal procedures and clients sits solely with them. As a consequence, the value of the business may only be worth the liquidated value of the tangible assets. 

Knowledge should be passed on to the successor or, shared with senior management teams to ensure that the business can succeed and realise value on sale. 

Whichever the choice of successor, careful planning to manage the succession is required. Shareholders agreements are useful in this process and can detail how long the shares are to be held by your successor and who can make any future decisions on the sale of them.

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