Succession Planning

Succession planning is fundamental for the longevity of your business. We understand that it can take a lifetime to build a business but failing to plan for succession and ultimately for retirement can see business owners throwing away their lifetime and retirement nest egg.

Figures published by the Exit Planning Institute and Family Business Australia both conclude that less than 30% of businesses have thought about and documented succession plans for management, control and ownership. A similar percentage of businesses are also not in a position to ensure maximum disposal value is achieved on sale.

Maxim can help you preserve your personal wealth by ensuring your business has an appropriate succession plan, is sale ready and structured effectively for your desired exit. Maxim recognises this is a complex process that incorporates many different areas and goals such as business, financial and personal. We work closely with our clients throughout the succession planning process. As their strategic partner we maintain the relationship from the initial discussion through to completion of the plan and where necessary, closing the deal. Maxim can provide assistance through a range of succession planning issues from helping to devise an exit strategy to assisting in finding potential buyers through our extensive networks.

A well-structured succession plan for a business considers a wide range of issues such as:

  • Who will be your likely successor - family member or third party?
  • Is your structure effective and flexible for your exit strategy?
  • What is your likely timing for exit?
  • How will your departure affect key stakeholders?
  • Management strategy. Can the business run without you?
  • Do you need a provision for active and non-active family members?
  • What income levels do you need to retire? 

There are many valuable benefits to planning your succession early such as:

  • Flexibility
  • The opportunity to maximise the value of your business
  • Having a plan to work towards
  • Preserving the value of your business

Maxim can assist in:

  • Locating suitable successors including assessing family capability
  • Discussing the possibilities of floating – saleability and investment ready status
  • Setting up required structures
  • Estate planning including direct and indirect tax management
  • Required insurances
  • Preparation of share transfers
  • Assistance and advice on preparation of legal documents