Invest in the Future of Your Business
Seeking external advice and management services ensures that your succession plan is executed in a manner that fosters future prosperity.
So how do we manage your succession?
The succession conversation opens with just that: a conversation. As the business’ leader, your goals and vision for the business are of the utmost importance. Never underestimate how important your aspirations are to the future of the business, even in this exit stage. Perhaps you would like to see a family member succeed you, and you would like to maintain a role into retirement, occasionally meeting with valued long-time clients. Or perhaps you intend to use the capital tied up in your business to fund your retirement. These goals become the basis of your succession plan and provide direction to the succession specialist.
From your goals, we work towards a methodology for succession. There is an obvious need for diversity in these plans based on your desires: a business owner who hopes for their daughter to succeed them, and a business owner who seeks to sell their business will obviously have very different management needs. Methodologies cannot be insensitive to the environments in which they take place. These environments can be emotional and interpersonal environments, as well as market environments. Perhaps your elected successor has reservations to work through, or perhaps the market is undergoing a period of turbulence. Given these considerations, succession processes ideally occur over a period of years with guidance given throughout.
To execute this methodology, there needs to be a commitment to resource management and funding. Successors need to acquire adequate funding for the process to be successful. Often a gradual sale of equity down to the successor eases this challenge. We also provide extensive guidance on debt and equity structuring that will make the process manageable for both owner and successor. An equally important part of this process is the exchange of expertise between the current business owner and the successor. Knowledge is a form of capital that cannot be instantly acquired, but –when transferred appropriately– will ensure the longevity of your legacy.
For specialist succession services, Seaview offer a free, informal, and obligation-free consultation at our Melbourne office. Contact us and start taking control of your legacy today.