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 :

1. Public listed company 
2. Private Limited company 
3. Sole Proprietorship 
4. Partnership 
5. LLP 
6. 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:

1. Children of the boss who is normally the main shareholder 
2. Current Management Staff who may be related or not related to the boss 
3. Outside professional 
4. 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.