For Business · Exit
Succession Planning
Every owner exits eventually. The ones who plan it three to five years out keep considerably more of what they built.
Overview
A business you cannot leave is not an asset
Most owner-operated businesses are not saleable in their current form. The relationships sit with the owner, the systems live in someone's head, and the financial records were prepared to minimise tax rather than to demonstrate value. Each of those is fixable, but not in the six months before you want out.
We start with a valuation and a readiness assessment, then work backwards. Which exit path fits: family, management buyout, or trade sale? What has to change in the numbers, the systems and the client relationships to support that price? And how do we get the $6 million net asset value test and the small business CGT concessions to line up when the contract is finally signed?
How we help
- 01
Valuation and readiness review
What the business is worth today, and the specific things holding that number down.
- 02
Exit path comparison
Family succession, management buyout and trade sale compared on price, tax, timing and certainty.
- 03
Tax-effective transfer
Small business CGT concessions, rollovers and superannuation contributions sequenced across the transaction.
- 04
Buy-sell agreements
Agreements between owners, funded by insurance, so death or illness does not force a distressed sale.
- 05
Three to five year timeline
A dated plan with the financial, operational and structural work sequenced against your intended exit.
Resources
Exit in the next five years?
Now is when the decisions are still cheap. We will map the runway with you.
FAQ
Succession planning questions
Three to five years. That is long enough to remove owner dependence, clean up the reporting, satisfy the concession tests and demonstrate two or three years of normalised profit to a buyer. Under twelve months, you are selling into whatever the numbers currently say.
Usually a multiple of normalised earnings, adjusted for owner dependence, customer concentration, recurring revenue and the quality of the records. The multiple moves considerably on those factors, which is exactly why the runway matters.
Often yes, using the small business CGT concessions, superannuation contributions and staged transfers. Family transitions have their own difficulty: price, fairness between children who are and are not in the business, and your own income after handover.
A binding agreement between co-owners setting out what happens if one dies, becomes disabled or wants out, usually funded by insurance so the remaining owners can buy the departing interest without draining the business.
That is common and it is a design decision, not an afterthought. Partial sales, earn-outs, consultancy arrangements and staged transfers all work, but each has a different tax outcome. We model them before you negotiate.
Speak to an accountant
Free 30-minute consultation.
No obligation. We’ll review where you are and tell you what we’d do.
+61 451 114 862Book a consultationThis page is general information only. It does not take your circumstances into account. Speak to a registered tax agent before acting on anything here.
Related services
Often paired with succession.
We’re here to help
Have a question? Tell us your story.
A qualified accountant replies within one business day.