Most business owners reach a point in their life when they want to step down from the top job. Some are forced from this position due to circumstances beyond their control.
Handing over a business can be problematic and possibly financially damaging to your company unless you have a clear succession plan. There are a number of factors that need to be taken into consideration:
Business succession planning also takes into consideration the possibility of the sudden death or illness of a business partner—making sure there are strategies in place so the company can continue to operate under all circumstances. This provides more security for your employees.
A well-prepared succession plan will offer you peace of mind that your business can survive and thrive when you leave it behind.
What will happen to the farm? It’s a question that many families inevitably avoid due to family dynamics and the often complex and sensitive nature of ownership.
Farm succession planning offers you and your family the chance to work through these challenging issues and come up with a legal strategy that stands to benefit all parties.
Without a solid succession plan, your family’s financial future could be jeopardised if one of the next generation decides to quit farming, if there’s a divorce in the family or an unexpected death.
A succession plan can ensure the family farm continues as a viable business when the ownership is transferred. It can give the next generation incentive to contribute to the farm with the knowledge that they stand to gain in the future. It can also map out a retirement plan, so that those leaving the business are financially taken care of in the years that follow.
There are also complex duty, taxation, property and business requirements to take into consideration when transferring ownership of your farm. Landholding structures such as joint ownership need to be addressed.
Succession planning not only takes into account your goals for your farm’s future, but also the next generation’s aspirations—offering everyone more peace of mind.
If you require further assistance with Business/Farm Succession Planning, please call or email: