Business Exit Strategy Checklist – This Goes For Farms Too
Business succession planning is about planning for the future. It is about making sure that your family and employees wonâ€™t be left in the lurch if something happens to you. It is also about planning for retirement, and exiting your business.
Your personal priorities
- Comfortable retirement income
- Minimise taxes
- Maximise community involvement
- Preserve wealth for children and grandchildren
- Spend everything
- Ensure business survival
- Never retire
- Always be needed
- More time with loved ones
- Harmony/conflict resolution
- Create family legacy
- Complete or partial retirement?
- Need capital or income? How much?
- Safe to leave capital in business?
- Superannuation or pension plan?
- Business partner
- Family member
Sudden death or illness
- Who takes over?
- How does your business continue?
- Insurance funding?
- Is your family dependent on the business?
- What is in your head that no one knows?
Legal things to think about
- Business structure: sole trader? Partnership? Unit or family trust? Company?
- Debt insured? Key person insurance?
- Is a shareholder agreement/partnership agreement/buy-sell agreement in force?
- What evens trigger a buy out?
- What is the valuation procedure on your partner buying your share?
- Is there a provision for your disability or illness?
You can download a version of this checklist from here.