If you own a company – no matter how big or how small – and want to step back while the business continues, it's vital you have an effective succession plan in place.
Why Do You Need a Succession Plan?
A succession plan does not just identify the new leadership roles and who shall fulfil them, or whether or not the best strategy would be to sell the business, but if completed successfully can lead to several benefits for the company.
An effective takeover ensures that all members of staff are aware of the changes which helps the company to continue running smoothly. It can also reduce recruitment costs as succession planning takes replacement leaders from within the company, rather than having to recruit externally.
Planning for succession also helps to identify any gaps in the company. This can be positions that may need to be filled, staff that may need more extensive training or even new services that can be offered due to the new leadership skills and talents.
Financially, having an effective succession plan can help to minimise tax liability whilst maximising your financial gains from the business. Succession planning means customers will not feel the impact of the internal changes, thus sales will not be affected. In fact, they may increase shortly after the changeover as new leadership may implement new ideas that bring success.
How GMP Can Help
At GMP, we have years of experience will all aspects of finance in business, and have worked with a multitude of industries. At GMP, your business is our business, and we shall do our best to use our skills, knowledge and experience to ensure success every step of the way for your company.
We'll spend time understanding your exit strategy, whether that be passing the business down to family, selling the business on or appointing current staff members to higher positions. This will help us to assist you in generating a financially effective succession plan, identifying and setting out all of your options to help give you peace of mind when transferring your business.
At GMP, we shall happily provide ongoing financial advice for you, your family and your successors.