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Succession planning

Succession planning is a complex process involving many business disciplines. As the majority of the Baby Boomer generation will retire over the next five to 10 years, succession planning will be vital for the long-term survival of private companies.

It becomes more complex as many different business, financial and personal issues come into play. A good succession plan for private companies looks at a range of issues such as:

  • suitable talent
  • possibilities of floating
  • current leaders
  • corporate structure
  • estate planning
  • insurance
  • share transfers

Shares held by an individual, which either on their own or with others acting together, control a private company, will have to be sold or transferred at some stage in the future – either on the death of the owner or as a result of a decision to sell by the owner.

Why prepare a succession plan?
The preparation of a succession plan forces you as the owner of a major stake in a private company to consider matters in respect of:

  • yourself – your future income needs, how long you want to remain active in your business, who has the management skills to run your business in the future, etc
  • your family – their future income, their involvement in the business, fairness and equity between your children
  • other shareholders – how will your actions/plans affect the other shareholders; do their requirements need to be considered?
  • your business – how will your departure affect your business; will the key employees feel insecure, will the business lose value with your departure?

Succession planning covers two matters – ownership and management. They are strongly interlinked but do need separate consideration.

Your succession plan will be greatly affected by your own personal circumstances – age, health and personal plans. Its objectives will be based on what is best for you, your family and any others you would wish to be involved in the succession, either regarding management or ownership of the business.

The objectives may include one of the following:

  • your own family continuing to own and manage the business
  • continuing family ownership with outside management;selling the business to key executives or employees
  • selling the business to competitors or other outsiders
  • reorganising the business to sell part and retain part
  • winding up and liquidating the business

Contact us

Dean Ellwood (09 303 0932)
Campbell Rose (09 303 0990)

Doug Wilson (07 834 7876)
Hilton Joll (07 838 4806)

Steven Brokenshire (04 495 3903)
Mike Curtis (04 495 3904)
Ian Fay (04 470 3579)
Stephen Florentine (04 495 3906)
Jon Mellors (04 495 3907)
Stephen Nicholas (04 495 3902)
Paul Pettit (04 495 3905)

Bronwyn Baird (03 363 3823)
Shari Carter (03 363 3849)
Grant Jarrold (03 363 3809)
Steve Law (03 363 3872)
Kylie Meyer (03 363-3722)
Grant Stewart (03 363 3770)

Kyle Cameron (03 474 8674)