Succession Planning

Planning the future of your business with no surprises

Sure, your business may be just where you want it right now, but how far into the future do you picture it? How far have you planned? The reality is, at some stage down the track your business may undergo a change of ownership.

At Nexis, we can work with you to develop business succession or transition programs to ensure that you have the best exit strategy should you need it.

Why is succession planning a good idea?

• It helps you formulate an exit strategy that best aligns with your lifestyle and financial goals.
• It maximises opportunities for both the buyer and the seller.
• So that you can step away from your business on YOUR terms, at a time of your choosing.

Nexis’ Succession and Transition Program achieves three key outcomes:

• Provides exiting owners with an effective sell down of equity, taking into account timing, price and lifestyle considerations.
• Offers new owners the opportunity to buy into the business on a structured basis that minimises their risk whilst maximising their opportunities.
• Ensures that the business transitions to its next phase in a seamless fashion.

Succession and Transition Program – the 6-step process:

1. Assess the current value of the business by conducting a Business Valuation Assessment.
2. Educate the current business owner about what is involved in transitioning ownership.
3. Document owner’s vision, details of the process, likely timelines and the involvement required from current and future owners (conduct a Business Life Plan)
4. Develop the business transition strategy which includes considerations such as:
   • agreeing price and business value methodology
   • timing of equity sell down
   • funding of buy-in
   • joint assessment of the business’ SWOT
   • roles and responsibilities
   • remuneration and incentive structure
   • business model
   • growth strategy
   • governance
   • terms of shareholder agreements and other documents
   • goals and action plans.
5. Offer or assist in obtaining tax, legal and estate planning advice.
6. Provide ongoing support.