For businesses · Business succession planning
Planning the handover before you need it
Succession is about what happens to the business when you step back, sell up or can no longer be involved. Planning early gives you more choice and protects the people who depend on it.
Overview
Many business owners put succession off because day-to-day trading comes first. Yet the questions don’t go away. Who will run the business? Will family members inherit shares, and do the other shareholders want that? What happens if an owner falls ill or dies unexpectedly? Clear answers protect the business, its value and your family.
Good succession planning brings together corporate and private client advice. The company’s articles and shareholders’ agreement need to work with each owner’s will and lasting powers of attorney. We work as one team across both, and alongside your accountant and financial adviser, particularly on tax, where the rules on reliefs for business assets have been subject to change.
Whether you plan to pass the business to the next generation, sell to your management team or a third party, or simply make sure it can carry on if something happens to you, we will help you set out the options and put a practical plan in place.
When you might need us
- You want to pass a family business to the next generation
- You are considering selling to your management team or a third party in the next few years
- Your shareholders’ agreement doesn’t say what happens if a shareholder dies or loses capacity
- Your will hasn’t been reviewed since you started or restructured the business
- You want someone to be able to manage your business affairs if you become unable to
- Co-owners are approaching retirement at different times
What we cover
Shareholder and partnership arrangements
We review and update articles and shareholders’ or partnership agreements so they deal with death, incapacity, retirement and departure in a way that suits the owners.
Exit options
We explain the main routes, including family succession, a management buyout, a trade sale or an employee ownership trust, and what each involves.
Wills for business owners
We prepare wills that work with the company documents, so shares pass as intended and executors can deal with them without unnecessary difficulty.
Lasting powers of attorney
We advise on property and financial affairs LPAs that allow trusted people to manage your business interests, and on how they interact with the company’s own rules.
Share transfers and restructuring
We handle gifts and transfers of shares, new share classes and reorganisations needed to put a succession plan into effect.
Working with your advisers
We coordinate with your accountant and financial adviser, so legal, tax and funding considerations are joined up.
How we approach it
Understand the goals
We talk with you, and where appropriate with co-owners and family, about timing, priorities and what a good outcome looks like.
Review what is in place
We look at the company documents, wills and powers of attorney together to find gaps and conflicts.
Set out the options
We explain the realistic routes in plain English, with their advantages, drawbacks and practical steps.
Implement and revisit
We put the documents in place and suggest when to review them, as the business and family circumstances change.
What you can expect from us
- A clear explanation of scope and costs at the start
- Corporate and private client advice working as one
- Named contacts for both sides of the plan
- Plain-English options rather than jargon
- Close coordination with your accountant
Who you will work with
Related insights
Questions clients often ask
When should we start succession planning?
Usually earlier than people expect. A planned exit or handover often takes several years to prepare, and protections for illness or death are best in place now. Starting early generally gives more options and more time to manage tax and funding.
What happens to my shares if I die?
Your shares usually pass under your will, or under the intestacy rules if you don’t have one. However, the company’s articles or a shareholders’ agreement may restrict who can hold shares or give other shareholders rights to buy them. Your will and the company documents need to work together.
Can a lasting power of attorney cover my business?
A property and financial affairs LPA can allow attorneys to deal with your assets, including shares. Whether they can act in your role as a director is a separate question that depends on the company’s articles and the law. We review both together so there are no gaps.
Is there tax relief for passing on a business?
Reliefs from inheritance tax and capital gains tax may be available for some business assets, but they depend on the type of business and the circumstances, and the rules have been subject to change. We work with your accountant or tax adviser, who should confirm the tax position.
This page is general information about business succession planning in England and Wales, not legal advice, and any plan will depend on your individual and business circumstances. Harton & Vale Legal is a fictional firm created as a design concept, so nothing here is legal advice. About this concept.
Make an enquiry
Talk to us about business succession planning.
Tell us briefly what has happened and what you would like to achieve. There is no obligation, and we will be straightforward about whether we are the right people to help.
We read your enquiry
A member of the relevant team reviews it, usually within one working day.
A short, no-obligation call
We ask a few questions, explain how we could help and outline the likely next steps.
Clear terms before any work
If you would like to go ahead, we confirm the scope, who will handle it and the costs in writing.