Business succession planning
Almost all business owners don’t consider how their business would be dealt with should they die.
This is particularly important if the business has a saleable value on death. When the business owner dies, unless the deceased’s Will included special clauses, all the executors can do is wind the business up and pass on the proceeds to those beneficiaries in the Will.
This can mean that if the business might be of interest to a potential purchaser post-death, all they are really buying are assets and possibly goodwill of the business.
It’s important that the Will gives the executors powers to allow them to continue to run the business while arranging for a sale to a prospective buyer. This will allow them to continue to fulfil & enter into new contracts, pay employees, purchase materials and carry on the business as if they were the owner.
It’s also important to recognise that if an executor is stepping into the shoes of the business owner, few are going to carry on such a time consuming task without the power to pay themselves.
A correctly written Will allows the business to continue as it has always done, and makes it more attractive to a potential purchaser. They can be assured of a smoother handover and ultimately increases the saleability value for the deceased’s beneficiaries to inherit.
If you own a business and would like to discuss what we can do for you, please contact us for our expert advice.
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