Business succession planning – securing your legacy

There is about to be a seismic shift in business ownership in New Zealand.

For Kiwi business owners, retiring or moving on to a new venture can seem like a daunting prospect. Fortunately, there are many options available to ensure that your business continues to thrive even after you take a step back. A strong legacy starts with strong planning.

With many baby boomers approaching retirement, a wave of businesses are poised to change hands. Business succession planning has become more critical than ever.

However, many business owners have yet to formalise their succession plans, which can have serious consequences for their business, employees, and families.

Act now to secure the best result for you, your family and your legacy.

The importance of early planning

Whether you’re planning to retire, pursue other ventures, or simply step back from day-to-day operations, careful and timely succession planning and early engagement with your lawyer, accountant and tax advisor is essential.

Succession planning is not just about preparing a business for sale. It’s about setting the foundation for its long-term sustainability.

Whether you want to pass the torch to family members, sell to a competitor, or transition ownership to a trusted employee, the earlier you start, the better.

You have options

When planning for succession, the right choice depends on your specific goals, family dynamics, the nature of your business, and your personal estate planning and financial situation.

Your options include:

• succession to family members
• succession to employees (management buyout)
• sale of the business to a competitor
• sale of the business to a private equity firm
• sale of the business to an individual buyer.

Legal and financial considerations

Seamlessly navigating the business succession process requires expert legal, tax and financial advice. A well-structured plan can help with tax efficiencies, protect personal assets, and safeguard the interests of stakeholders.

Shareholder agreements and “buy-sell” arrangements can be beneficial tools in ensuring the continued success of the business while providing clarity around the roles and expectations of everyone involved.

Meanwhile, vendor financing and the use of structured payments can make it easier for a successor to enter the business, especially if they lack sufficient upfront capital.

We can help

The right plan, executed properly, can make all the difference in ensuring your business continues to thrive long after you step away. Let the legal experts at Lane Neave help structure your business succession plan, while working side-by-side with your accountants, tax and business advisors.

Email us today to arrange an obligation-free, 30-minute consultation: succession@laneneave.co.nz

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