Unless you have a tried and tested succession plan like royalty, many small businesses can suffer following the exit of a significant individual. This is particularly true of family enterprises.
Some issues are:
• Repayments of loans can be demanded by the banker where there is a material change of control (check your loan agreements)
• Loss of ‘know how’ can lead to reduced revenues
• Deceased estates raise many issues such as dealing with your partner’s spouse
• An heir taking over – not always a good thing…
• How to fund a payout or buyout
Good succession planning needs to be incorporated by all small business to ensure the success of the business post the exit of any individual integral in the running of the business.
Our BusineXT business planning program is designed to cover all of this. Please contact us todayto see how we can help.