Exit and Succession Planning · for family succession is often cited as the main cause. When the...
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www.mitchellcharlesworth.co.uk Chester 01244 323 051 | Liverpool 0151 255 2300 | Manchester 0161 817 6100 | Warrington 01925 635 141 | Widnes 0151 423 7500 A member of Kreston International. A global network of independent accounting firms. MC Vanguard Corporate Finance Ltd is the Corporate Finance division of Mitchell Charlesworth and is licensed by the Institute of Chartered Accountants in England and Wales for the provision of certain investment services. Whilst the information is believed to be true, the communication may not be comprehensive and recipients should not act upon it without seeking professional advice. Exit and Succession Planning There comes a time in the development of many privately owned businesses when the shareholders want to realise the value of the business they have built or possibly to pass the business on intact to the next generation. For owner managers, successful succession planning is crucial if your business is to retain its true value when you step back or sell out. Our exit strategy review offers a carefully tailored review of all of the exit options available to the owners including trade sale, management buy-out/ buy-in and full or partial family succession. Owner managed businesses account for some 70 per cent of UK companies, yet only about 25 per cent survive the transition to the second generation and less that 15per cent to the third. Failure to plan for family succession is often cited as the main cause. When the owner manager retires, the business can underperform and lose value if the new owners are unprepared or unsuited to a management role. Most successful exit plans are prepared early – we recommend starting 2 to 3 years before the owners target exit date. We can then establish both a current and a potential exit value and work alongside the business, to achieve sustainable growth in value. Our effective succession planning guidance helps to minimise the potential threat to a business from the inevitable change in management or ownership. Our wide-ranging experience shows that issues of family ownership and succession planning must be carefully thought out, long before retirement. Our experts can help to make sure this is professionally and thoroughly addressed. We can also work with specialists, who can provide coaching support to the new or future management team, as they prepare for their new roles and to help the vendors think about life after the business. We understand that the nature of owner-management means many businesses are so dependent on the owners that they struggle to function profitably without them. So we focus sharply on the first objective of any succession plan, which is to ensure that the company can flourish after the owners retire. Even if the owner manager eventually sells out, a strong management team, ready to take up the reins will help to maximise the price, while also creating options for a management buyout. A strong team managing a growing business is high on the list of requirements for most trade buyers. Our taxation advice ensures the value is realised in a tax efficient way and also addresses post-sale compliance issues, relating to income and inheritance tax planning. Testimonial “Having successfully run Concept PR for 20 years, we felt the time was right to expand and look for a partner with whom to merge. As a family run business we wanted to join with another likeminded PR consultancy. Brian McCann helped us every step of the way. His quiet, considered manner made sure we stayed focused through the many months of negotiations, resulting in a merger that is a perfect fit. It also helped that Mitchell Charlesworth are our accountants and this made the transactions easier. I cannot recommend the team at MC Vanguard highly enough”. Margaret Tarpey, Managing Director, Concept PR. Brian McCann Partner Tel: 0151 255 2300 E: [email protected] Jerry Scriven Partner Tel: 0151 255 2300 E: [email protected]
Transcript of Exit and Succession Planning · for family succession is often cited as the main cause. When the...
www.mitchellcharlesworth.co.uk Chester 01244 323 051 | Liverpool 0151 255 2300 | Manchester 0161 817 6100 | Warrington 01925 635 141 | Widnes 0151 423 7500
A member of Kreston International. A global network of independent accounting firms.
MC Vanguard Corporate Finance Ltd is the Corporate Finance division of Mitchell Charlesworth and is licensed by the Institute of Chartered Accountants in England and Wales for the provision of certain investment services. Whilst the information is believed to be true, the communication may not be comprehensive and recipients should not act upon it without seeking professional advice.
Exit and Succession Planning There comes a time in the development of many privately owned businesses when the shareholders want to realise the value of the business they have built or possibly to pass the business on intact to the next generation. For owner managers, successful succession planning is crucial if your business is to retain its true value when you step back or sell out. Our exit strategy review offers a carefully tailored review of all of the exit options available to the owners including trade sale, management buy-out/ buy-in and full or partial family succession. Owner managed businesses account for some 70 per cent of UK companies, yet only about 25 per cent survive the transition to the second generation and less that 15per cent to the third. Failure to plan for family succession is often cited as the main cause. When the owner manager retires, the business can underperform and lose value if the new owners are unprepared or unsuited to a management role. Most successful exit plans are prepared early – we recommend starting 2 to 3 years before the owners target exit date. We can then establish both a current and a potential exit value and work alongside the business, to achieve sustainable growth in value. Our effective succession planning guidance helps to minimise the potential threat to a business from the inevitable change in management or ownership. Our wide-ranging experience shows that issues of family ownership and succession planning must be carefully thought out, long before retirement. Our experts can help to make sure this is professionally and thoroughly addressed. We can also work with specialists, who can provide coaching support to the new or future management team, as they prepare for their new roles and to help the vendors think about life after the business. We understand that the nature of owner-management means many businesses are so dependent on the owners that they struggle to function profitably without them. So we focus sharply on the first objective of any succession plan, which is to ensure that the company
can flourish after the owners retire. Even if the owner manager eventually sells out, a strong management team, ready to take up the reins will help to maximise the price, while also creating options for a management buyout. A strong team managing a growing business is high on the list of requirements for most trade buyers. Our taxation advice ensures the value is realised in a tax efficient way and also addresses post-sale compliance issues, relating to income and inheritance tax planning. Testimonial “Having successfully run Concept PR for 20 years, we felt the time was right to expand and look for a partner with whom to merge. As a family run business we wanted to join with another likeminded PR consultancy. Brian McCann helped us every step of the way. His quiet, considered manner made sure we stayed focused through the many months of negotiations, resulting in a merger that is a perfect fit. It also helped that Mitchell Charlesworth are our accountants and this made the transactions easier. I cannot recommend the team at MC Vanguard highly enough”.
Margaret Tarpey, Managing Director, Concept PR.
Brian McCann Partner Tel: 0151 255 2300 E: [email protected]
Jerry Scriven Partner Tel: 0151 255 2300 E: [email protected]
