Employee ownership specialist adviser Glen Dott shares why succession planning should be dealt with sooner rather than later and shares details on a series on upcoming succession masterclasses.
Planning for succession is one of the biggest challenges a business owner will face. When you’ve worked hard to build up your business, what do you do when it comes time to stop? Whether you’re looking to hand over the reins of your business soon or simply planning for the long-term, make sure you explore all the available options in advance to allow time for plans to be properly drawn up. Giving the topic early consideration can mean better results for the employer, the employees and the business.
Succession options to consider include:
- Sale to another shareholder
- Company buy-back
- Ownership transfer within the family
- Employee buyout
- Management buyout
- Trade sale
Employee buyouts are becoming an increasingly popular succession option in Scotland. Being employee-owned gives staff a meaningful stake in the business, boosting productivity and performance, whilst ensuring the company is anchored in the local area, retaining jobs and skills. For business owners, employee ownership offers a tax efficient exit route that protects a company’s legacy while providing a competitive price for the business.
To help you decide whether an employee buyout could work for you, Co-operative Development Scotland will be hosting a series of five ‘Selling your Business’ online masterclasses over the coming months, exploring succession options including employee ownership.
If you are a business owner considering an exit from your company, these masterclasses are an excellent opportunity to hear from succession and employee ownership specialists, as well as employee-owned companies themselves. View the full here.