Business Wealth and Family Wealth – Business succession planning and estate planning are the link
Recent work with clients has again highlighted the need to coordinate business succession planning and estate planning to achieve client outcomes. Much of our work is focused on identifying and then maximising business value and wealth – we are often able to dramatically improve business valuations by improving business performance through benchmarking and implementation of employee share plans and incentive schemes to attract, motivate and retain key people within the business. The ability of business owners to focus on a small slice of a much larger pie contributes dramatically to the asset that is their business wealth. By utilising family wealth planning strategies at the same time we are able to protect that wealth and as we extract wealth from the business it can be invested externally to maximise returns. For many business owners the diversification into other asset classes is totally new – much of their wealth is often tied up in their primary asset – the family business – this change alone can have a dramatic effect on wealth planning.
The addition of estate planning tools to protect wealth and importantly to provide the two outcomes we most regularly hear from clients – continuity and ongoing success of the business ( including its employees) and providing for future generations – provide business owners with a coordinated succession and estate plan and ultimately peace of mind.
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