Success Plan (SA)

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Supporting generational change
Succession planning may be hard, but done well it can cement a legacy
It’s not just about the money, managing the relationships is key to a successful succession plan
No family is the same, no business is the same, find your family’s unique solution
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About Us

Primary producers are faced with many challenges. Drought, flood, fire, disease, fluctuations in international commodity markets. But perhaps one of the greatest challenges for a primary producer, or any business owner, is successfully implementing a family succession plan. There are so many overlapping and intersecting considerations, it is difficult for many to even know where to start.
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Give Joe a call now

0437 035 089

What we offer

Success Plan (SA) assists primary producers and business owners to begin the conversation with family members, to help our clients understand what needs to be considered, to identify potential issues and how to overcome them and to provide a road map for carrying out a successful plan.

We know that a succession plan must start with the relationships. We get to know you and your family by sitting down with all of the relevant individuals separately and collectively to discover what you all want to achieve out of the process. From there we offer:
  • Advice and assistance to create and implement a tailored, tax efficient family succession plan
  • Family facilitation and mediation
  • Collaboration with your other trusted advisors such as accountants and financial planners
  • Technical taxation and stamp duty advice
  • Business structuring and restructuring advice
  • Agreed fixed fee terms

Our advice is not just limited to primary producers. All businesses that are looking to transfer control of assets between generations or between owners can benefit from our expertise. Also check out our sister business, Agril Legal (SA) here.

What is a succession plan?

A family succession plan is the creation of a legal framework to allow for the transition of assets between generations or owners. It does not necessarily mean that the transfer of assets happens immediately (in fact usually it does not), it is a process whereby the general terms of transfer are agreed and the legal structure is created to allow for the implementation of the plan over time.

A succession plan is not an estate plan, although the two are connected. An estate plan is the creation of a legal framework for the transition of assets upon death. Often the relevant assets in a succession plan will not form part of a person’s estate plan, the assets will have already been dealt with during the person’s lifetime. Separate consideration is required for an estate plan once the succession plan is known (that is where Agri Legal (SA) can help).

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What is success?

It is important to understand that whilst collaboration and compromise is essential to a successful succession plan, each part of the family will be trying to ensure (quite rightly) that they get an outcome that they are happy with. That will inevitably create some tension. It is rare that everyone gets all they want.

A good succession plan should seek to achieve:

  • A flexible, tax effective and appropriate structure for holding assets and trading
  • The transfer of control of assets to the next generation, or a clear plan to transfer control of assets over time
  • The transfer of management of the business to the next generation, or a clear plan to transfer management over time
  • A comfortable standard of living for the retiring generation
  • Independence for the retiring generation that ensures their retirement is not overly reliant on the future success of the business
  • Provision for family members not involved in the business that ensures they are adequately provided for, without placing unsustainable pressure on the business
  • A risk management strategy that contemplates death, divorce or disability of one or more of the participants – this should include how assets are controlled as well as insurance requirements
  • A structure that ensures family members not involved with the business are not able to make a claim against the business assets

Outcomes that should be avoided are:

  • A premature change of control of the business
  • Failure to adequately provide for the retiring generation
  • A plan that requires the business to excel in order to meet the needs of the retiring generation
  • Implementing a structure that exposes assets to risk of division in a matrimonial breakdown or an inheritance claim
  • Ignoring the wishes and concerns of the family members not involved with the business
  • Failing to ensure the family members not involved with the business benefit from the creation of wealth by the retiring generation

Give Joe a call now

0437 035 089
joe@agrilegalsa.com.au

Tips for the process

Here are our tips to get you started:

1. Know your family

Take the time to work out who needs to be involved, consider what their likely reaction is and plan for it, think about the best approach relative to the person’s personality

2. Communicate

Open, honest and clear communication is the key to implementing a successful succession plan

3. Act professional

Being a family business does not mean you don’t act professionally when it comes to management, governance and process

4. Talk to your bank

Speaking to your bank manager early in the process can prevent being disappointed later

5. Gather information

It is essential that we all properly understand what is owned, how it is owned, when it was acquired, what the original cost was, what the current value is and what documents govern or effect the assets

6. Decide your key outcomes

Clearly articulate what it is you want from the process, both financial and personal