As a business owner, the chances are that you have at some stage thought about your exit and succession planning from your business.
But what do you do if you want to realise value from your business, but don’t want to sell your business to a third party?
For many people, the solution is to pass the business on, either to family or to the management team.
If you’re not looking for a lump sum, this is a far better way to extract full value from the business. You may decide to sell to your employees or your family over a number of years while taking an income and retaining a degree of control. Crucially, this approach also overcomes the seller’s remorse that gets in the way of an outright trade sale, and helps guarantee that your employees keep their jobs.
For those clients not yet ready to take a back seat, Income and Share Ownership Planning (ISOP) allows you to take income out of the company in the most tax-efficient way while working to make the business less dependent on you, possibly by motivating and tying in key people with shares or share options. This will give you the option of selling or passing on at a later date, and give you a better, more profitable company in the meantime.