“It is never too early to start the journey but it is often too late”
– Bob Neill

 

An effective internal succession strategy involves transferring portions of equity over time from the business owner to existing staff. This can be a very attractive succession strategy for business owners as it addresses their emotional and economic objectives.

In contrast to a sale to an external party, business owners report that they:

  • Value the opportunity to reward key staff
  • Have more control over their own migration from the business
  • Experience strong business growth with engaged equity partners
  • Find it easier to protect their business legacy
  • Are able to plan their retirement better with earlier releases of capital and a defined stream of payments

We explore with you the various issues involved with an internal succession. Importantly, an internal succession requires time to be effective. It is a staged approach which requires careful planning and co-ordination seeing business owners transition from owner to partner and then retirement whilst at the same time key staff transition to partners and then to business owners.

 

transition-graph

 

This shift towards sharing responsibility and control is one aspect of the succession journey that requires careful consideration. There are many others.

We work with you to address the various challenges such as time limitations, business structure, valuation consensus, and funding and successor capabilities.

We work with you to guide the execution of the strategy and can help deliver the transition that suits you, your family and your staff.

CONTACT US

to discuss how we might be able to assist you.

Internal Succession Planning