In this episode of All Things Business – The Podcast, Ben is joined by Luke Prout and Joanne Surley from Cottons Group and Kirsty Simmonds from DFA Law to discuss succession planning.
The upcoming Autumn Budget
The conversation kicks off with the guests’ predictions for the Autumn Budget, which is due to be announced on 26th November. Following last year’s budget which led to soaring costs and tax hikes that proved detrimental for many businesses, the upcoming budget is eagerly anticipated by business owners.
Kirsty is tentatively hopeful about this year’s budget and hopes that it will lessen the current strain on UK businesses. Whereas in the past the Autumn Budget changes weren’t implemented until April, now changes can happen within less than 24 hours, making it very difficult for businesses to prepare.
‘Failing to plan is planning to fail’
The team cannot overstate the importance of having a rigid exit plan in place for your business. No time is too early to plan, even if you have no current intentions of passing on the business, as you can have the most options and the best deals early on.
Family business succession can be especially turbulent due to multiple variables and additional emotional ties. There are over five million family businesses in the UK, and many of them do not have a clear succession plan or shareholder agreement. When children do not want to or are unable to inherit a business, complications can arise, but being prepared can ensure that you get a good deal.
How DFA Law and Cottons Group can help
Luke, Joanne and Kirsty are keen to help businesses navigate the turbulent process of business succession. They utilise a holistic outlook to consider all factors and suggest the best route forward for a particular business. This could be inheritance, a management buyout, Employee Ownership Trust, or selling the business.
They will calculate exactly how much your business is worth, help to find a buyer (if need be), and negotiate on your behalf to acquire the best and most tax-efficient deal.
The team have encountered a range of scandalous stories and tricky situations, but encourage anyone working through difficult business decisions to speak to an advisor and gain specialist guidance.
Watch or listen to this episode here:
Thank you to our Digital Media Partner DFA Law LLP.
