Shares held by an individual, which either on their own or with others acting together, control a private company, will have to be sold or transferred at some stage in the future - either on the death of the owner or as a result of a decision to sell by the owner.

This guide identifies the key issues that need to be considered to prepare a succession plan which balances your needs with those of your family, shareholders and the business.

Why prepare a succession plan?
The preparation of a succession plan forces you are the owner of a major stake in a private company to consider matters in respect of:

• yourself - your future income needs, how long you want to remain active in your business, who has the management skills to run your business in the future, ect.
• your family - their future income, their involvement in the business, fairness and equity beetween your children
• other shareholders - how will your actions/plans affect the other shareholders; do their requirements need to be considered?
• your business - how will your departure affect your business; will the key employees feel insecure, will the business lose value with your departure?

Succession planning covers two basic matters - ownership and management. They are strongly interlinked but do need separate consideration.

For more information, download our Succession planning brochure below.