Research reveals that a large number of directors who are over the retirement age are still running their business due to a lack of exit planning.
Overall, 113,000 (15 per cent) of business directors in the UK are aged over 66, while 10 per cent are over 70.
While retirement today is a much more dynamic and fluid process, with many entrepreneurial-spirited directors choosing to work beyond retirement age, the research shows that some directors have no choice but to continue running their business past retirement age because they do not have an exit strategy.
While the sale of a business can take much longer than one would expect – up to 9 months on average for a sub-£25 million business – there are steps directors can take early on to start the succession planning process. This will increase the chances of getting the best price, and ensuring the sale is as tax efficient as possible.
Exit planning should be part of an SME business owner’s long-term plan, and that planning should start now.
Our dedicated SME support team at Beavis Morgan works with individuals not only to set up their businesses, but to guide and mentor them through the various challenges of each business lifestage, whilst always seeking opportunities to reduce your tax bill, and enhance wealth accumulation and succession planning.
We understand the issues that surround succession which can take many forms, such as passing the business on to family members, a sale to staff, a buy out of a retiring shareholder, or a trade sale or Stock Exchange listing, to name a few of the choices.
Our specialists are available to:
– Prepare the business for sale or flotation
– Value the business and its intellectual property
– Provide sales negotiation and completion
– Raise funds for buy-outs or buy-ins
– Act as reporting accountants on IPO’s
– Minimise exposure to capital taxes, by ensuring the availability of Entrepreneurs’ Relief
Whether you are selling a business or looking to buy, we are also able to provide specialist expertise in sourcing finance for SME businesses, enhancing cash flow liquidity and enabling successful transactions.
Whether you are selling a business or looking to buy, we are also able to provide specialist expertise in sourcing finance for SME businesses, enhancing cash flow liquidity and enabling successful transactions.
For further information, contact Peter Drown or Paul Ashton.
Then there’s the important question of Inheritance Tax Planning (IHT). With receipts from IHT hitting a record high according to figures from HM Revenue & Customs, it’s now more important than ever to seek expert advice on how best to mitigate IHT in order to secure the financial future of your beneficiaries.
By not understanding the rules relating to IHT, where the current IHT threshold is £325,000 for a single person and twice that for a married couple, families could end up paying tens or even hundreds of thousands of pounds in tax.
Through careful planning, IHT can be mitigated. But, as with succession planning, we do recommend that planning starts are early as possible. Our Beavis Morgan tax experts are available to guide you and advise you on the available strategies.
If you would like to know more, please contact Barrie Dunning or your usual Beavis Morgan Partner.