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Understanding the Income and Share Ownership Planning (ISOP) process

In my last post I introduced the Kirkpatrick & Hopes succession planning method, ISOP – a way of gradually passing ownership of your company to your employees or family members. In this post, I’ll go into more detail about the various stages and steps involved in a typical ISOP project.

There are four key stages to ISOP planning: Clarify, Plan, Implement and Manage. In each stage, there are specific steps involved in order to ascertain goals, plan the handing over of the business, implement changes, and monitor progress on an ongoing basis.

These steps are as follows:

ISOP Stage 1: Clarify

  • Step 1: Financial health check – This is a checklist to help review your financial position. It covers all the key aspects of your finances, including accounts, tax, personal finances, and general business finances.
  • Step 2: Financial review – Here we look at the information in a typical set of statutory accounts, alongside other information that gives a greater insight into the business’ financial performance, such as the company’s true profitability and an estimate of the value of the business.


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

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