Toolkits
Create a tax, retirement and succession plan for your client
As the saying goes, there are 2 things in life that are certain – Death and taxes. None of us really wants to think about those things.
However, having a plan to prepare and ensure that our loved ones aren’t left in the lurch is important.
Owning a business complicates this and understanding the value embedded in the business, both with and without the owner being involved is crucial.
What
- Ensure that your clients’ leave a legacy even when they move on from their business
- Offer retirement, tax and succession planning advice
Why
- Small businesses are often dependent on the founder and owner – For a business to have enduring value, there needs to be a separation of the business and the person
- Founders often become trapped in the business without a way to slowdown as they get older
Who
- Businesses where owners are nearing retirement age, wanting to emigrate, or generally just wanting to be proactive around managing their affairs
How
- Hold 2-3 engagements with your client
- Process
- Discuss their needs and requirements
- Perform a baseline valuation using bizval
- Understand the drivers of exit valuation
- Is there successor in place?
- Can the business run without the owner?
- What are the implications from a CGT and estate planning perspective?
- Does the owner have sufficient keyman insurance in place?
- Create a plan, with the valuation giving a guide as to the financial requirements
- Structure tax affairs appropriately
- Develop succession plan
- Facilitate Key man insurance
