Ensuring business continuity on owner exit

Importance of ownership and management succession

Considerations around succession – both ownership and management – is a critical component of forward business planning for all business owners. Owners need to apply the same effort to their exit as to their entry to protect the business they have strived so hard to build and the employees who will continue to work for the organisation.

Ownership and management succession can take many forms, dependent on the organisation, potential sale, opportunities for a management buyout, and implications for personal tax minimisation with its ongoing consequences for long term wealth and estate planning. Tribel Accountants can work with you to review and evaluate all the alternatives available to you.

Having an exit plan

As a business owner, do you know where you want to be in 5 years? Do you still want to be running your business? Do you know how much it can be valued? What legacy can you leave?

Succession decisions are essential to ensure a smooth exit for the owners and continuity and surety for new management and employees. Taking these decisions now is critical to ensuring the legal implications and arrangements are confirmed. Owners who don’t plan or don’t have the succession plan in place run the risk of potential issues.

Without precise succession planning:

Disgruntled workforce

Without a smooth ownership and management transition, key employees may move on

Management conflict

Unclear lines of succession as agreed by contract can create unnecessary tension and issues within management

Family conflict

Where succession is not agreed by contract but involves family, issues of equity and stability may arise

Legal issues and implications

Succession plans agreed through contract outline clear lines and processes for transition and are not open to challenge

Tax implications

It’s critical to take expert advice in advance to help minimise any potential personal tax burden

Inheritance impacts

Ensuring the most for those you may leave behind through considered estate planning

Benefits of ownership and management succession

It’s a wise business practice to leave an organisation in a more efficient and streamlined way. Appropriate management or ownership succession plan can help plan for the intricacies and potential pitfalls. Often intertwined, these can also be separate, discrete activities with their own legal and process implications. Ownership succession refers to the transition from current to new purchasers, and management succession refers to when that owner exists the management and leadership structure.

Ownership succession

Specific to the owner or owners of a business, transition from current to new ownership

Benefits include:

  • Planned change out of a business
  • Buy/sell arrangements where multiple owners are involved
  • Planning towards expected sale value
  • Clear communication with stakeholders
  • The setting of expectations in advance
  • Clear legal obligations and requirements


Management succession

Specific to running the business, transition from current to new management and leadership

Benefits include:

  • Creating efficiencies in advance of the transition
  • Buy-in from employees and stakeholders
  • Supported transition to new management vision
  • Future-proofing an organisation to set up future success
  • Ease of transition from one leadership team and style to the next
  • Overall stability and continuity for the business

How Tribel Accountants can help

Contact us today to arrange a complimentary obligation free consultation to take the first step towards achieving your business goals.

Key person protection

Ownership protection

Employee protection

Working with our planners

Engagement process

Cashflow management

Debt management

Wealth management

Personal risk management

Retirement readiness

Estate planning

Our Philosophy

Our History

Our Solutions