Business succession planning: protecting assets and continuity
Ensure the continuity of your business in the event of unexpected events. Read our article on succession planning and discover strategies for protecting your business assets.
Succession planning is a fundamental strategy for guaranteeing business continuity in the event of unexpected events, such as the death or incapacitation of the company's owner. Succession planning is also a way of protecting business assets and avoiding conflicts between heirs and partners.
In this article, we'll discuss some strategies that can be applied to ensure the security of your business.
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Define the objectives of succession planning
Before starting succession planning, it is important to define the objectives to be achieved. It is essential that everyone involved in the process is aligned on the objectives. Some questions that can help define the objectives are:
- Who will take over the management of the company in the event of the owner's death or incapacity?
- What is the role of heirs in the company?
- How will the business assets be divided?
- How can business continuity be guaranteed?
Identify successors and define their roles
After defining the objectives of succession planning, it is important to identify the successors and define their roles in the company. It is essential that the successors are prepared to take over the management of the company and that they know what their responsibilities are.
One of the ways to prepare successors is by implementing a succession plan. In this plan, it is possible to define the roles of each successor, identify their competencies and establish a training plan to develop the skills needed to manage the company.
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Consider setting up a family holding company
One of the succession planning strategies is the creation of a family holding company. A family holding company is a company created with the aim of controlling other family businesses. In this way, all the business assets will be protected and the company will be managed more efficiently and quickly.
In addition, creating a family holding company can also be a way of minimizing taxes and guaranteeing business continuity in the event of conflicts between heirs.
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Take stock of company assets
Carrying out an inventory of business assets is one of the most important stages in succession planning. It is essential that all the company's assets are identified and valued, so that it is possible to define how the assets will be divided.
The inventory of business assets is also important to identify any debts and obligations of the company, which can influence the division of assets.
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Establish a business will
A business will is a document that establishes how business assets will be divided in the event of the owner's death. This document can be a way of avoiding conflicts between heirs and guaranteeing business continuity.
In a business will, it is possible to define how the assets will be divided, establish the obligations of the heirs in relation to the company and appoint an executor to manage the company in the event of the owner's death.
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Conclusion
Succession planning is a fundamental strategy for ensuring business continuity in the event of unexpected events, protecting business assets and avoiding conflicts between heirs. To do this, it is important to define objectives and goals, identify successors and their roles, consider setting up a family holding company, carry out an inventory of business assets and draw up a business will.
CLM Controller can help you implement succession planning, offering expert advice and helping to ensure the security of your business. Contact us and schedule an appointment for more information.
If you need to rely on experienced accounting advice, capable of providing the best strategies for your company to improve its financial performance, get to know CLM Controller's solutions now.
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