Cottons Corporate Finance > Business > Succession planning & Business Disposal

Succession planning & Business Disposal


When you retire what will happen to your business that you may have built up for many years or even have owned as a successor through many generations of a family? This is becoming more of an issue facing owners of many businesses as other family members may be unable or unwilling to take on such responsibilities. Identifying a succession strategy is therefore extremely important and should be conducted at an early stage, sometimes many years before planned retirement.

There are many options available to any owner-manager considering succession issues, including the ability to pass the business on to other family members, a possible sale to existing management, or a sale to a third party. In many instances, shareholder value is maximised when a strong management team is created that will be capable of continuing the running of the business without the detailed involvement of the retiring principal. A properly motivated work-force can also assist with any succession planning and we can advise on many possible ways of creating employment loyalty in advance of a planned disposal.

Business disposals can arise at any time and for a number of different reasons, not just on the retirement of an existing owner. As with any business disposal strategy, the sooner that professional input in the process is secured the greater the opportunity of maximising success. For many sellers, a business disposal may happen only once in their life. The process can be extremely stressful and a major time distraction at the stage when a concerted focus needs to be applied to continuing the success of the business.

Our package of services is designed to minimize stress and down-time and to ensure that a deal is negotiated and concluded on terms that ultimately have to be acceptable to both buyer and seller.

  • Pre-sale business advice
  • Business valuation
  • Identification of potential purchasers
  • Preparation of a sale memorandum
  • Discreet and professional marketing
  • Vetting of proposed purchasers
  • Supervising the offer process, negotiations and through the legal process to completion
  • Taxation advice including advice on the structure of the proposed disposal to maximize after-tax proceeds