Monday, December 11, 2017

Succession Planning

Succession is often viewed as ‘who gets what when”. This is but one small part of the succession process. What underpins a successful succession plan is business viability therefore another important aspect of succession planning is transition of management. If this is not addressed it can seriously undermine any good succession plan. It is about the phenomenon of letting go and the evolution of roles within a business over time.

Therefore succession planning is a process. The purpose of this process is to provide all family members with a common understanding and knowledge about succession planning. It enables each family member to appreciate the different elements and dynamics which need to be addressed and managed in a succession planning process. This is a great opportunity for us to work with your family face to face sharing our real life experiences and knowledge. It is also an opportunity to allow everyone in the family to get on the same page and so as together as a family unit you can be the drivers of your succession planning process in a constructive and positive way.

Who usually needs to do a succession plan?

  • Family farm businesses who want to start the succession planning process early. The next generation may not be back working in the business however are considering coming back to the family business as an option for their future.
  • Business owners (Mum and Dad) trying to understand what to do early and what they can set up now to prevent any issues down the track.
  • Multi- generation family farm/businesses whereby there could be two or three generations involved working together.
The process of preparing an Succession Plan at Auswild & Broad Pty Ltd involves:

Step 1 – We prepare an Engagement Letter detailing the work to be done with an estimated fee structure. With this letter you will receive some basic information about Succession Planning, along with a set of questionnaires for you and your family to complete.

Step 2 –We meet with you and your family to discuss your needs and complete a fact finding exercise where we compile a Family Tree, a Business Structure Flowchart and a Statement of Financial Position. We also review and discuss the answers to your family questionnaires.

Step 3 – We identify any issues that may arise including review of business viability, retirement planning for the current owners, risk management strategies, changing roles for each family member, housing, salaries and a review of business structure. From here we make a recommendation or identify a series of options for your consideration.

Step 4 – We meet with you again to go over our recommendations and prepare an Action Plan. In most cases we will liase with your solicitor, banker, financial planner and any other advisers to ensure that your plans are compatible across these disciplines.

Step 5 – You receive a complete package containing a summary of your Succession Plan, detailed notes and comments from advisers along with all the reports prepared earlier. 

Step 6 – A review /evaluation set at 3, 6 or 12 months after the plan starts to measure progress, discuss issues and revise plans if necessary.

Testimonials

“Peter has provided valuable insight and guidance to us in an ever changing business environment. During a recent business restructure, Peter was actively involved, providing guidance on the company structure, the setup of accounts, working through the many issues that arise during a restructure and providing advice and guidance whenever necessary. His advice and guidance was often above his call to duty” 

Jarrod Fritsch of Jardon Technology Pty Ltd (2011)

“Peter has worked with us in the role of Accountant and Business Advisor for over 20 years. In this time his advice and guidance has enabled us to move our business successfully through many changes. We have grown from a small family business of Mum, Dad and three sons working from home to now being a major employer in our small town. Peter has seen us through all these transitions with sound advice and encouragement”

Amanda Paterson from Patersons Transport Services Pty Ltd (2011)

The professional tax planning advice of Peter and the staff Auswild & Broad is helping us move forward for the next generation of Coleman farming members” 

Lynn Coleman from Coleman Pastoral Co (2011)


Auswild & Broad Pty Ltd
ABN: 88 089 746 190
Disclaimer
E. temora@auswildbroad.com.au
P. (02) 6978 0077
 
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