When you think about your ideal exit plan, what would it include? Would you like to gradually scale back from the business, retaining a financial and emotional investment in the business for as long as possible? And, knowing that too many companies fail after a sale, I’ll bet you also want to secure the long-term future of the company and your employees.
After many years of working with business owners, developing an understanding of what really works and what doesn’t in succession planning, the Kirkpatrick & Hopes team began to look for new ways to help clients plan for their future. We wanted to develop a succession planning method that helped businesses survive the change in ownership, and gave greater financial and emotional security for the exiting business owner. Out of this, Income and Share Ownership Planning (ISOP for short) was born.
ISOP is a structured approach to succession planning that gradually passes ownership of your company over to your employees (which may or may not include family members). This allows you to maintain an interest in your business while freeing up more personal time – and it also allows you to benefit from certain tax incentives for employee-owned companies.
There are four key stages to ISOP planning: Clarify, Plan, Implement and Manage.
To read the rest of this blog, which is based on an extract of Andrew Gray’s book Do More of What You Love: The New Approach to Business Succession Planning – go to here