Your farm represents a lifetime of hard work, and it can often be difficult to avoid disputes when transferring it to the next generation. The majority of farmers in Australia haven’t discussed succession planning.
Business succession planning outlines what will happen and who will take over your business when you leave, whether by choice or by circumstance. The aim is to provide the business with a smooth transition so that disruption is minimised.
Succession planning involves many complex issues, spanning legal, financial and management arenas, so it’s important that you seek legal advice to ensure all your bases covered.
Each business is different of course, but you will likely need to consider:
- Goals and objectives of all parties ?
- Do you require an ongoing income from the business?
- What impact will there be on all members of your family?
- Identify your potential successors and objectively assess their capability, needs, commitment, skills and experience.
- Minimising Capital Gains Tax, Stamp Duty and Income Tax for you and your family and remaining partners
- What will happen in the case of catastrophic injury or death?
- Define roles and responsibilities of current family members, business owners and employees
- Business valuation – is there a plan to increase the value of the business particularly if it is to be sold?
- How will you exit and by when?
Wright Clarke Solicitors will liaise with your financial advisors to ensure cost effective practical solutions to these issues. We also have experience in bringing reluctant parties to the table in a friendly safe environment ensuring all parties are heard and understood and their needs met and issues resolved in most situations.