All businesses should have a Business Succession Plan....
Biz Succession Passing the baton to the next generation
What is Business
Succession Plan?
Business
Succession Plan is a plan for business to pass on to the next
person to manage the company when the current boss has passed
on or become invalid due to sickness or
accident.
What is Business Succession
Plan?
Business Succession Plan is a plan for
business to pass on to the next person to manage the company when the current boss has passed on or become invalid
due to sickness or accident.
Depending on the type of corporation status,
the Business Succession Plan will vary depending on the needs of the shareholders :
Public listed company
Private Limited
company
Sole Proprietorship
Partnership
LLP
LLC
Business Succession Plan may include
retirement planning for the boss (i.e. when he exits, what will he gets from the company). It can be part of Estate
Planning for the boss.
Who should have a Business Succession Plan?
Any business person who owns and run a
business. It is more crucial if the person is a "keyman" to the success of the business. Since most
companies are closely knitted family business, it is imperative that the boss should have a plan to hand over the
business to the next generation. If there is no such plan, squabble will result amongst the heirs as to who
is qualified to run the business. Many companies went belly up when the boss passed on. Sad but true
fact.
The new person to take over the business may
include the following:
Children of the boss who is normally the main
shareholder
Current Management Staff who may be related or not
related to the boss
Outside professional
Buyer who buys over the
company
How to proceed
to have a Business Succession Plan? Discuss your requirements with
professional like us. We will meet up with you to do a fact find about your business and your
requirements. We will then plan a financial plan to best suit your needs taking into consideration of
your retirement, your aspiration for your business and the financial standing of the
company.
It may involve looking into your account books to evaluate the value
of your company, consulting your accountant and tax advisor and lawyer.
The following will be needed:
Last 3 years financial
statements
Buy-Sell Agreement if you plan to have
surviving shareholders to buy over your shares
Executive HR Agreement if company plan
to give you a Golden Handshake
Shareholder's Resolution to authorize
the transactions involved for Business Succession Plan.
If you are interested, please contact us by
clicking the button below.
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Quotes
"For Business to last more than three generations, business succession plan
is essential."