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Business Succession

A Business Succession Plan is an agreement between business owners, detailing how a transfer of equity will occur in the event of a business owner departing the business and the funding to support it.

In Australia, very few business owners have a documented Business Succession Plan, in fact the majority of owners have no plan at all.

The two main triggers of business succession are:


Both situations require careful planning. However, the unexpected nature of an involuntary departure can result in immediate problems if the owners do not have a Business Succession Plan. Some of these problems include:

  • determining a fair business value
  • continuing owners raising the funds to purchase the departing owner's interest
  • agreeing on a payment method and timing of payment
  • the departing owner or their family refusing to sell their interest to the continuing owners

Davis Insurance specialises in advising business owners on Business Succession Planning.