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Succession planning

Succession planning

It can take a lifetime to build a successful business. But more than three-quarters of founders literally throw away their life's achievement by failing to plan adequately for succession...Transferring the ownership and management of a family business to the next generation is rarely a straightforward process.

 
Badly handled, it can destroy wealth and family relationships. Careful planning helps reconcile different family interests and expectations, resolve awkward tax and financial issues and ensure continuity of the business. We advise business owners and other family members on planning to accumulate and preserve wealth, increase the value of the business, manage change, professionalise the management of the business and resolve conflicts between family members. It’s the lack of appetite for the leadership role, the aversion to accepting the task of being the coordinator in the succession process, which is seeing clients succession plans remain on the back burner, firmly in the too hard basket where the “let’s leave it for another day” approach remains prevalent. This lack of planning is costing small businesses considerably as they approach their exit and retirement. It places the long-term survival of their business at risk, it leaves their business partners vulnerable, leaves staff members without employment stability and business owner’s families without direction or certainty. All of these issues can be minimised, if not avoided altogether, if clients were to commit to the process earlier in their tenure. There have been countless surveys, many demonstrating alarming numbers of businesses that recognise succession planning as an issue which needs to be addressed within 2-5 years. Overwhelmingly the reason why they have not addressed these issues sooner, is that they do not know where to start. Events such as marital breakdown, sudden illness or death can greatly complicate matters for the unprepared.

SUCCESSION PLANNING FRAMEWORK

Our plan is a roadmap that details how you will reach your individual goals and the timetable you will follow to achieve them. Its purpose is to help you keep focused on where you are heading and why. It also helps make sure others involved in the process do not lose sight of what is expected of them, and can look back and understand why certain choices were taken or decisions made.

OWNERSHIP TRANSITION PLANNING

This process defines when and which assets are subject to ownership transition, we recognize that the transition process can be emotionally difficult. That is why we take a sensitive approach geared toward helping you ensure the continuity by identifying beneficiaries, including family members, local community or any purposes. Trusts, hybrid companies and other legal structures are used to balance the motivation and right-timing for the transfer.

IDENTIFICATION OF BENEFICIARIES

We understand that your vision for your wealth is a key drive in your quest for a new owner. Each asset/business type will be assessed against potential owner's skill, suitability and also motivation. Reserved beneficiaries are part of the identification phase, which is born in stressed scenarios in order to avoid unexpected events or negative behavioural evolution. The process might add the research of the next generation or the purpose itself also.

LEADERSHIP DEVELOPMENT

Ahmadoff wealth advisors distinguish the types of leaders for ownership succession, such as purpose bearers, financial wealth owners, family leaders, etc. Each type of leader require different and complex development program. We advise our clients on the structure of the program and its implementation depending on leader type planned.

We assist in:

  • The current owners' personal needs and objectives
  • Family needs and expectations
  • Ownership of the business going forward
  • The family's ongoing role in the management of the business
  • Day-to-day management of the business
  • Minimising taxes on transition of the business

Research Capability

Our research team is differentiated through dominant-thought leadership across the private wealth spectrum with a broader perspective that takes into account both economic and psychological trend.
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