You've heard of it, read about it but what you done:

The lights have been green signalling the go ahead for some time however many business owners seem to be waiting at crossroads to decide whether to move forward, or to see if another punter made it through safely.  Succession traffic is building and only the early risers are avoiding the queue’s to transition their business smoothly, whilst reaching their desired value.

What are you waiting for?

Whether your transition date is 3, 5 or even 10 years out, you need to be in a position whereby you can transfer business ownership at any point in time, and achieve maximum value.  Market convergence, industry and overseas trends, sudden ill health, or a change in market drivers such as the recent price hikes in fuel can dictate an earlier sale date.  Readiness is paramount.

At times it may feel like everyone from legal advisors, chartered accountants, insurance agents, business brokers, and bankers are out there trying to take a slice of the consultancy fee from your business.  In fact, you might as well throw in a journalist and a neighbour into the mix as we all seem to know a little bit about how others should run their finances.  Don’t be put off; you will need input from some of these specialists.

Discussion of your succession options and pathway should be initiated with your most trusted business advisor, usually your Chartered Accountant.  This group of professionals are most likely to know more about your business and understand your financial position than any other industry group as they meet with you more often to learn your business’s direction, position, cash flow, and can interpret business performance soundly.  Business owners need a ‘conductor’ to help coordinate the succession process.  Chartered Accountants will be involved at various stages throughout the course of your succession plan but are also well positioned to know when other professionals such as the legal advisor, insurer, banker or business broker should be introduced.

A positive succession experience will involve these professional groups working together, so first-rate relationships amongst this group are crucial.  Your chartered accountant should be engaged in preparing indicative valuations, undertaking business improvement, performing internal due diligence, information memorandums, tax restructuring, balance sheet reviews, and establishing sale terms.  In completing each of these tasks they should be more effective at helping you to identify the benefits/needs of other specialist services.  For example, if and when employment contracts, leases, or supply contracts need updating.  Early input will help identify key matters for sale & purchase such as treatment of warranties and indemnities and thereby avoid