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Donna Dillon

Business Succession Planning

Written on the 22nd of January 2009 by Aspire SRS

Business Succession Planning

Business Succession involves the development of strategies which will assist a business in continuing to operate in an effective manner, should a particular event or circumstance arise, which would significantly impact on the business. For example, the untimely death of an owner, or the serious illness of a key technician within a business.

Insurances are part of the overall strategies, which also includes Shareholder Agreements and Business Succession Deeds.

The bottom line outcomes for a Business Succession Strategy are to meet the differing needs of:

The departing owner and their family
The surviving owners and their families
The business which relies on expertise to generate income
The guarantors of any business debts

In rudimentary terms, we assist client businesses to keep their businesses going, and avoid legal disputes over ownership and pay outs, when someone dies or becomes seriously ill.

Properly implemented Business Succession Planning will:

Enable the surviving principal(s) to buy out the financial interests of a deceased or critically ill partner

Replace lost business revenue due to illness or loss of a key person

Repay business debts, and release a critically ill partner or their estate from the burden of debt repayment

Maintain cashflow whilst a locum or replacement person is found and trained

Keep the business viable whilst an appropriate buyer can be found, if all parties seek to exit the business

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Business Succession Planning

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