Businesses could be at risk by not planning for the future
In the latest UK200Group blog post Christian Goulding, Head of Corporate Finance, Howard Worth warns of the risk businesses take when they don't put a succession plan in place.
Just four in 10 family business owners have any form of succession planning in place, according to a new study.
Legal & General, which published the report, says businesses are leaving themselves at “considerable risk of failure” by not planning for the future.
Succession or exit planning is an important part of any business. By planning ahead, directors can comfortably predict the future and account for obstacles accordingly.
For example, many of our clients often ask how inheritance tax works when passing a business over to a family member, or how capital gains tax works when selling a business.
Another common scenario is looking at who will take over the business when you’re gone or fall ill.
By looking at these important management aspects now, business owners can reduce bills and have peace of mind that your family or business partners aren’t left in an awkward predicament.
However, figures show that the majority of businesses don’t have a robust plan in place to pass down a business.
Legal & General found that just 27 per cent of family businesses would survive the transition to the second generation. Moreover, 57 per cent of family-run firms say they would have to cease trading with a year and a quarter if its chief director fell ill.
Christian Goulding, Head of Corporate Finance at Howard Worth works closely with business owners to deliver exit strategies and succession plans. He invites you along to an event he is holding for Business Owners in the North West on Tuesday 20th March to learn more. Details of the event can be found via the link
or if you wish to discuss your own circumstances directly please feel free to contact Christian; Tel: 01606 369000 ChristianGoulding@howardworth.co.uk
Back to Blogs