Exit strategies and succession planning
If you are in business, you need to consider your exit strategy. If you wish to withdraw from the business, leaving it for the next generation, a workable succession plan – preparing for a smooth transfer of ownership – is essential.
Statistics show 60 per cent of UK businesses are family-owned, yet only a quarter of these make it to the next generation.
If you intend to sell, have you thought about how will you value the business or find a suitable buyer? And how much do you know about the tax implications of the timing of disposals?
AGS can help you to think about what will happen to your business when you want to step down and put plans in place so this can happen.
So if you want to pass on your business to family members, you need to look at their own skills, abilities and wishes – as early as you can – to help you decide if this is the right option, particularly if your relatives will need time to learn the ropes.
If there is no obvious family successor, you may need to consider a buy-out by your management team or selling to an external buyer. If your business is too small, or too closely linked to your own specialist skills to attract a buyer, you may choose to wind up the business and realise its assets.
For more information, please contact us on 01384 217222 or at accountants@ags.gb.com.