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Family Business – At the End of the Line

Family History

The Travelling Wilbury's sang it, but what happens when it is a family Business that has come to the end of the line? There is no next generation or successors to hand over to or, those in line have no interest in running or keeping the business? 

There are a number of steps involved, including winding down, preparing an exit strategy and planning for closure or sale.  

Importantly, early planning and structuring your exit can help to minimise the risk of reduction in family wealth while still meeting your tax and other obligations.  

Sell the Business - This can be the answer and a positive step forward by providing capital for your retirement. 

This step, where applicable, will also allow younger generations to pursue their own interests. Seek professional help, including legal advice, an Estate & Retirement Planner and a Business Sales Realtor.  

Liquidate the Business – this may be the only way if sale or transition are not options. Seek professional legal advice, as there are formal processes that must follow to bring about the end of a solvent company (voluntary deregistration and voluntary winding up).  

5 Critical Steps: 

  1. Assess the situation: consider all your options, pros and cons, before acting.   

  1. Consult Business experts: Share, discuss your situation before deciding your exit option and plan.   

  1. Seek expert advice: It is crucial to identify and address all your legal obligations and requirements.  There are many complexities that require professional answers. Blackburn Accounting can help with getting your books in order and addressing any Business and tax obligations.

  1. Contact Stakeholders: communicate with all interested parties and stakeholders before making any decisions that concern them.  

  2. Plan your and your family’s future: Gather the family together to discuss what a successful end of the line means. Plan, communicate openly. If necessary, formalise arrangements via a legal document.