Businesses Urged To Make Sense Of Succession Plans
Having a robust succession plan in place is absolutely vital to ensure the security of your business’s long-term future.
Here at County Finance Group, we’ve increasingly seen how succession plans can fail when either partners that are obligated to fund a buy-out cannot afford to do so, or partners that in reality would prefer to retire but don’t, simply because of the minimal payments they’d receive if they did. This isn’t even taking into account a whole host of other factors that could necessitate the bringing in of a new partner to a firm, such as unforeseen deaths, disabilities, resignations, or contractual terminations.
In instances such as these, having a robust and viable buy-sell agreement is an excellent starting point, which will set a legally binding contract that governs the situation in the event of a partner leaving the business. This will go some way to reassuring customers, employees, and suppliers that the company will remain secure.
Another issue we are increasingly experiencing is that younger professionals can be put off from buying in as a partner because they struggle to access the required funds. We are able to provide flexible financial packages to solve this problem, which not only enables an employee to make the transition to become a partner, but also provides existing partners with a means to exit the business and pave the way for new talent.
For more details on our complete range of partner finance packages, please contact a member of our team