Welcome:

Welcome

Site Map:

Site Map

Adviser Updates:

Adviser Updates

Publications and Documents:

Publications and Documents

Business Succession Planning:

Business Succession Planning

Need for Succession Plan

Need for Asset or Buy/Sell Strategy

Need for Liability or Key Person Strategy

Negotiating a Succession Plan

Simple Succession Plan:

Simple Succession Plan

Complete Succession Plan:

Complete Succession Plan

Strategy

Financial Needs

Insurance Funding

Retirement Funding

One Page Strategy:

One Page Strategy

Asset Needs

Liability Needs

Personal Needs

Who Pays the Premiums?

Valuing the Business

Simplifying the Valuation Issue

Equity vs. Loan Capital

One Policy Strategy:

One Policy Strategy

Flexibility

Dual Role of Personal Cover

Dual Role of Debt Red'n Cover

Security & Tax-Effectiveness

Cost Savings

Pre-Agreed Purchase Price

Apportionment of Premiums

Methods of Aggregation

Multiple Policy Approach:

Multiple Policy Approach

Super Fund Ownership

Tax Disadvantages

Cost Disadvantages

Other Disadvantages

Geared Premium Funding

Super Buy/Sell

One Page, Two Policy Strategy:

One Page, Two Policy Strategy

Other Issues:

Tax Deductibility

Inadequate Insurance Proceeds

Vendor Finance

Changing Needs

Future Growth of Equity

Trauma Buy/Sell Strategy

Sole Proprietors and Families:

Sole Proprietors and Families

Overview

Family Ownership

Sale Strategies

Third Party Buy/Sell Strategies

Estate Equalisation Strategies

Family Buy/Sell Strategies

Second Generation Strategies

Debt Reduction Strategies

Overview of Alternative Strategies

Different Needs of Different Generations

The design of a Succession Plan for a Sole Trader or Family Business will primarily depend on:

• whether the Second Generation wishes to retain ownership of the Business; and

• the need of the Proprietor to fund their living expenses in retirement.

Set out below is a brief summary of some alternative strategies to deal with these issues:

Family Ownership Issues

This topic deals with the following issues:

• none of the Proprietor's children wish to retain ownership of the Business after the Proprietor's retirement or death; or

• some of the Proprietor's children wish to retain ownership of the Business after the Proprietor's retirement or death.

Click here to read more about this topic.

Sale Strategies

This topic deals with the following issues:

• the Proprietor sells the Business to some or all of their children after their retirement (in order to fund their living expenses during their retirement); or

• the Proprietor sells the Business to a Third Party after their retirement.

Click here to read more about this topic.

Third Party Buy/Sell Strategies

This topic deals with the following issues:

• the Proprietor sells the Business to the management or staff of the Business after their death; or

• the Proprietor sells the Business to a pre-agreed Purchaser (a "friendly rival") after their death.

Click here to read more about this topic.

Estate Equalisation Strategies

This topic deals with the following issues:

• the Proprietor uses insurance to help distribute the assets in their Estate equally to their children or Beneficiaries upon their death ("Estate Equalisation").

Click here to read more about this topic.

Family Buy/Sell Strategy

This topic deals with the following issues:

• the Proprietor uses Buy/Sell Insurance to enable one or more children to purchase the Business from their Estate upon their death ("Family Buy/Sell Strategy").

Click here to read more about this topic.

Second Generation Succession Planning Strategies

This topic deals with the following issues:

• the design of a Complete Succession Plan for the Second Generation.

Click here to read more about this topic.

Debt Reduction Strategies

This topic deals with the following issues:

• the use of Insurance to reduce the Debt of the Business.

Click here to read more about this topic.

Copyright: Ian Gray Solicitor

Adviser Tip

In the case of Retirement, a Complete Succession Plan can pre-agree the Purchase Price and specify a timeframe for payment.

If you do not have adequate insurance for an Insurable Event, your Succession Plan can specify a timeframe for payment of the shortfall.

See more Adviser Tips

Current Marketing Schedule

Ian Gray travels to most capital cities regularly throughout the year and is available for Meetings.

Please click here to see his availability in Brisbane, Sydney, Melbourne, Adelaide and Perth.

Please contact us to arrange an appointment or teleconference.