17
HIRE AND RENTAL NEWS • AUGUST 2014
INDUSTRY in FOCUS
circumstances which have prompted it.
Working through the business succession
planning process not only allows your
business to survive beyond your ownership
or partnership, but it ensures your family
receives the true value of your interest in
the business. A good succession plan puts
you in control and keeps all concerned
involved and informed.
“Succession planning essentially describes
your future plans for your business,” Mark
Hutchison, National Manager of OAMPS
Life Solutions said.
“It looks at all the key elements of the
business, business protection and business
planning, including growth objectives and
key people.”
Poor succession planning outcomes can
be avoided when the owners (in many
cases the family) sit down and discuss all
the issues, risks and future plans of the
business. Importantly, determine how the
business will be valued when one owner
retires or exits and how the buy-out will be
funded.
Prabath Ekanayake, an OAMPS Life
Solutions Client Services Advisor, believes
in having a rigorous succession discussion.
“Assessing the growth and progression of
both the business and the key contributors
uncovers the risks and opportunities your
business is likely to face,” Prabath said.
“The result is a road map for your future
in which you are able to maximise your
profits and develop an exit strategy.”
To ensure your succession plan is
attainable and delivers the most satisfying
results, the road map needs to contain firm
financial assessments, including business
valuations and documented valuation
gaps. Realistic agreements, for partners or
family, compelling parties to act in certain
ways when triggered by the plan need to
be documented. Business and personal
insurance protection, including a personal
financial plan, are a priority. Funding
plans for buy/sell agreements (a transfer
of ownership contract) and retirement are
essential to ensure the final stages of any
business succession plan are concluded
successfully.
“Set a realistic timetable and measurable
milestones throughout,” Prabash said.
“Most importantly, stay on track by
reviewing your plans regularly and stick to
them.”
You don’t have to battle through the
process of creating a succession plan by
yourself. OAMPS Life Solutions can provide
information, support and expertise to make
this vital planning process as simple and
effective as possible for you.
OAMPS Life Solutions can arrange for
a specialist adviser to assist you with:
business succession; estate planning;
income protection insurance; investments;
key person insurance; life insurance;
superannuation; total permanent disability
insurance; trauma insurance
Contact OAMPS Life Solutions on
ph: 1800 466 842 or visit website:
OAMPS Insurance Brokers. AFSL 238312. To
the extent any material in this article may be
considered advice, it may only be considered
general advice as it does not take into account
your personal objectives, needs or financial
situation. OAMPS urges you to read the relevant
policy wording and consider whether any
products are appropriate for your situation
before making a decision to acquire insurance.
Will your business retire when you do? continued...
