Introduction
Strategic succession planning secures legacy
Our financial planning services extend far beyond traditional wealth management. Together, we help you to define how much capital you need from the sale to live the life you envision after business ownership. Without a robust succession plan, the value you have built into your business can be diminished or lost, directly impacting your personal financial security.
Our financial planning service ensures the business sale delivers the financial outcomes you need to fund your retirement, new ventures, or personal aspirations.
What is
Succession Planning?
Business succession planning is the strategic process of preparing for the transfer of leadership and/or ownership of a business when the current owner(s) or key management retire, leave, or are unexpectedly unable to continue. It’s about ensuring the continuity, value and legacy of the business, regardless of the circumstances.
In 2019, Paradigm Norton carefully navigated this process when we transitioned to becoming employee owned, so we know only too well that it goes way beyond just naming a successor; it could include:
- Identifying potential future leaders: Both internal and external candidates.
- Developing and training successors: Equipping them with the necessary skills, knowledge and experience.
- Determining the exit strategy: Whether it’s a sale to a third party, a management buyout (MBO), a family transfer, or transition to an Employee Ownership Trust (EOT).
- Valuing the business: Understanding its worth for sale or transfer.
- Addressing legal and tax implications: Structuring the transition in the most efficient way.
- Ensuring operational continuity: Minimising disruption during the handover.
How we help
Succession Planning
How can a Financial Planner help with Business Succession Planning?
While lawyers handle the legal documents and accountants deal with the business’s financial statements, a financial planner plays a crucial and distinct role by focusing squarely on the business owner’s personal financial future and overall wellbeing. They act as the “quarterback” for the owner’s personal side of the transition, ensuring the business exit aligns with their individual personal life and financial goals.
Why does Succession Planning matter?
Great succession planning is paramount for a business seller because it directly secures their personal financial future, ensuring the maximum value for their life’s work and providing the peace of mind to transition into their next chapter on their own terms. It allows them to proactively design their post-business life, rather than reacting to circumstances.
Who is it for?
Our personal succession planning service is aimed primarily at business owners and entrepreneurs, particularly those who have a significant portion of their personal wealth tied up in their business.
It’s for individuals who:
- Are approaching or considering retirement. They want to ensure their business can transition smoothly and generate the necessary funds to support their desired lifestyle in retirement.
- Are looking to exit their business within a specific timeframe, most typically over the coming three years. They need a structured plan to maximise the value of their business and prepare for the financial implications of a sale.
- Have a strong desire to protect their legacy. They want to ensure their business continues to thrive, maintain its culture, or provide for their wider team after they step away.
- Are contemplating different exit strategies. Whether it’s a sale to a third party, a management buyout (MBO), a family transfer, or transitioning to employee ownership (EOT), they need guidance on the personal financial ramifications of each option.
- Have complex personal financial situations. Their personal wealth is often intertwined with the business, requiring sophisticated planning for taxes, investments and estate matters.
- Want peace of mind. They seek to reduce the anxiety and uncertainty associated with a major life transition, ensuring their financial future is secure.
- Value expert coordination. They need a trusted and highly experienced adviser who can work seamlessly with their legal, accounting and business valuation professionals to ensure all aspects of the exit align with their personal financial and life goals.
- Own a business that represents their primary asset. For these individuals, the business exit is not just a transaction; it’s the defining event for securing their financial future.
In essence, a personal succession planning service is for any business owner who understands that exiting their business is not merely a commercial decision, but a profound personal one that requires careful, forward-looking financial strategising.
We can help with:
- Optimising personal and family tax
We will work with you to implement smart tax strategies, ensuring you and your family retain more of your wealth, both now and in the future.
- Pre-sale financial planning
We help you answer the crucial question of ‘How much is enough?’ – meticulously planning your personal financial needs and aspirations to ensure your business sale delivers true financial freedom.
- Navigating your transition to employee ownership
We offer tailored advice and guidance to help you navigate the financial complexities of transitioning to an Employee Ownership model, drawing on specialist expertise within our team.
- Strategic post-sale investment management
We will design and manage a robust investment portfolio for your sale proceeds, aligned with your personal goals and values, ensuring your wealth grows sustainably and provides for your long-term security.
- Purposeful philanthropy planning
If giving back is important to you, we can help you craft a meaningful family giving strategy, working with other specialists to ensure your wealth creates a lasting positive impact in line with your personal values.
Still have questions or want to know more?
Ready to talk about the future?
Let’s make sure your business thrives for generations to come, preserving your legacy and securing the future for everyone involved.
Values
Why choose Paradigm Norton?
We believe true financial planning isn’t just about numbers; it’s about lives. That’s why we always put you, your values and your future at the heart of every conversation. Our approach ensures that every strategy we craft is deeply aligned with what matters most to you, securing not just your wealth, but your wellbeing.
At Paradigm Norton, we partner with business owners to ensure their hard work translates into lasting personal financial freedom. We craft bespoke plans that bridge the gap between business value and your life's aspirations, focusing on your future beyond the sale.
You will of course receive unwavering support from our highly qualified and expert financial planning and tax team. Over the last 20 years, we have refined our approach to consistently deliver reliable, effective solutions tailored to our clients’ needs.
Our values-led ethos means your financial plan isn't just about money; it's about aligning your wealth with what truly matters. We are committed to impacting lives for the better, driven by principles that prioritise people, purposeful actions, and building a sustainable future.
For business leaders contemplating a sale, our status as both a B-Corp and Employee-Owned firm means we understand the unique balance of purpose and profit. We speak your language, helping you craft an exit that not only maximises value but also preserves your legacy, culture, and the future of your people.
Team
Our Team
We understand that contemplating a business exit or major change is a deeply personal and strategic decision. We’re here to help you navigate this pivotal phase with confidence, ensuring your personal financial future aligns perfectly with your business aspirations.
Talk to one of our trusted Partners today and let’s begin shaping your next chapter.
Read
Brochure
Free financial planning resources
Helpful tools and guides to start planning your financial future with confidence.
Questions
Succession Planning FAQs
Thinking about the long-term future of your business is a strategic move that benefits everyone involved. Here are some of the most common questions business owners ask us when exploring comprehensive succession planning.
What exactly is "succession planning" and why should I start now?
Succession planning is the strategic process of identifying and developing future leaders and owners for your business. It’s crucial because it ensures continuity, preserves your business’s value and secures your legacy – whether you plan to exit in a year or a decade.
Starting early provides more options, time for development, and better financial outcomes. One of Paradigm Norton’s non-executive directors encouraged the Board to create a succession plan, much earlier than envisaged, but he was right. These things take time and careful planning.
How do I decide which succession route is right for my business?
There are various paths: a sale to a third party, a management buyout (MBO), a family transfer, or transitioning to employee ownership (EOT). We can help you as you explore each option, considering your personal goals, the business’s unique characteristics, market conditions and the impact on your employees and legacy.
How will my business be valued for a succession plan, and how can I maximise that value?
An accurate, independent valuation is essential, regardless of the chosen route. We can point you in the right direction of firms that have significant experience in this area.
What are the tax implications for me as the owner during a succession?
Tax efficiency is paramount. You can work with our tax team and with your own tax advisers to navigate the complexities of capital gains tax, inheritance tax, and other relevant costs. Our aim is to structure the succession to minimise your personal tax burden and maximise the net proceeds you retain.
How much money do I personally need from the business exit to fund my desired future?
We work with you to answer the ‘How much is enough’ key question. We will work through your personal financial aspirations post-exit – be it retirement, new ventures, or charitable giving – and quantify the capital and income required. This ensures your succession plan is aligned with your personal financial security.
How will a succession impact my wider team and the company culture?
A well-executed plan can provide clarity and motivation for your team. Transitioning a business to employee ownership is a key driver for a business leader wishing to perpetuate the culture that has been created, often over a period of many years.
How will the transition be funded, and what does the payment schedule look like for me?
Funding can come from various sources e.g., bank finance, deferred payments from the business, external investors. We will help you understand how the funding structure and deferred payments etc, align with your personal cash flow needs, recognising that no two transactions are ever the same.
What happens to my personal investments and pensions when the business transitions?
Your business wealth is part of your overall financial picture. We integrate the proceeds from your succession with your existing personal investments and pensions, creating a holistic plan that optimises your entire financial landscape for long-term growth and income.
What role, if any, will I have in the business after the succession?
Your involvement can range from a clean break to an advisory role or even staying on the board. We will discuss your preferences and help you financially model the various options and scenarios.
Who else should be involved in my succession planning team, and how will they work together?
A successful succession requires a coordinated effort.
We will help you assemble and work seamlessly with a team of trusted advisers, including legal professionals, accountants, valuation experts and specialist brokers, acting as your central guide through the entire process.