Guarantee your retirement & ensure long-term stability in your business
Our succession planning services are designed to help business owners plan for the eventual transfer of leadership and ownership. This ensures business continuity and stability following their retirement or semi-retirement.
In our experience, an effective plan will maximise the value in your business as you transition away from the day-to-day operations. The better the plan, the smoother your transition to retirement will be. Our succession planning services typically take 1 to 5 years to execute, and focus on ensuring your business reduces continuity risks, has a structured transition plan, retains top employee talent, and enhances operational performance.
Studies have shown that having an effective succession plan in place will provide business owners with a greater sense of security and peace of mind as they transition into retirement, while also increasing the likelihood of long-term success for the business.
Businesses who avail our succession planning services are more likely to:
- Have a more positive future outlook
- Retain high-performing staff
- Have higher sales and profit growth during transition
- Achieve the business owner’s retirement goals
Most business owners have thought about retirement at some point in their lives, and may have already identified a potential business successor when the time comes to step away. However, they usually lack the time and expertise to adequately undertake succession planning, which can put the timing and success of their exit at risk.
Groves & Partners has significant experience and expertise in working with business owners and their professional advisors to provide business valuation and transaction services. Our team consists of Chartered Accountants, Registered Business Valuers and Registered Business Brokers with specialist skills. Through providing these services, we have a broad range of experience in being able to analyse business operations, and understand the factors that impact planning. We have a strong track record of assisting clients in the planning, structuring, valuation and negotiation of succession.
Our Succession Planning Process
We look at your business independently by analysing its key characteristics, success factors and value drivers, which require continuity to ensure long-term success. Every business is different, and there is no one-size-fits-all succession planning template.
This is why our succession planning services take into account the unique needs and goals of the business and its stakeholders.
Our typical process is outlined below:
1. Initial consultation & information gathering
Our initial phase of work allows us to gain a better understanding of the business, the business assets which drive success in the company, the retirement objectives of the business owners, and the timing for eventual business succession. We start this process by facilitating an initial consultation and information gathering session with the business owners.
2. Identify potential successors
We review the current operational structure, and develop an optimal long-term structure for the business post-retirement. We also analyse the skills inside your business to identify talent gaps, and assist you in attracting successors from outside the business where appropriate.
3. Valuation
We review the business in its current form, and provide you with insights into what your business is worth, and the likely risks to this valuation if you were to retire today. This step is significant because it allows for the planning of contingencies to mitigate the potential risks the business faces upon your retirement.
4. Structuring the succession plan
We provide recommendations on the optimal organisational structure, timing of succession, key employee retention, remuneration, debt/equity financing, and share transfer techniques. We also work closely with your tax advisors in developing an ownership transfer structure that maximises tax outcomes.
5. Execution
We assist you in drafting and executing documents such as term sheets, employment agreements, and shareholder agreements. We also assist with financing arrangements and effecting share transfers.