abbotts group logo
Close this search box.

Why high-wealth individuals should consider a succession strategy

Succession planning offers an opportunity to extract maximum value from a business prior to the business owner leaving. Whether through a business’s sale, restructure, or transitioning to other family members or new management, a succession plan (or exit strategy) aids in a smooth transition and is ideally started years in advance of an eventual exit. A trusted advisor’s role is to protect  their client’s wealth and ensure that other stakeholders such as business partners, lawyers, or even other family members are dealt with in an equitable manner

First and foremost, it is crucial to make sure that a succession plan is realistic and achievable and that it considers what is best for a business. Succession planning also goes hand in hand with estate planning so to ensure that generational wealth such as cash, shares and other investments are passed on from one generation of a family to another in the most tax-efficient manner. 

High-wealth individuals who belong to  multi-generational business’s should also consider using a family office to support the family’s objectives and legacy as well as manage ownership and leadership transitions, assist in preserving and growing wealth and protect against risk. A family office is essentially a dedicated financial services business made up of in-house resources and external specialist advisors. A family office offers confidentiality in financial matters, transparency in management, alignment of interests and potentially higher returns. It facilitates family conferences in order to avoid disputes relating to inheritance, for example, and encourages families to see the value in continuing the family business.

Abbotts have a wealth of experience and skill in structuring succession and retirement plans. In our 35 years in business, we have formulated proactive and tailored succession plans to suit the financial goals of many of our clients. One such example is Great Southern Fuel Supplies, a three-generation family-owned and operated business. Read more about the range of financial services we have employed to empower their success. Get in touch to learn how we can help set you up for retirement or successfully exit your business.

Enquiry Form