What is transition and its benefits?

Transition involves the selling down of equity in your business to staff, family or others over an agreed period of time on an agreed basis. This method of sale can provide many benefits including:

• Controlling the process
• Controlling the time frame
• Maximising the return from your business assets
• Securing and retaining services of key staff
• Family businesses passing on in an effective manner
• Funding of future owners secured over business assets

The transition process ensures effective transition of ownership of the business to future owners and involves five steps:

Step 1 – Education

Step 2 – Alignment goals, values and reaching consensus

Step 3 – Developing business transition strategy

Step 4 – Documenting and formalising arrangements

Step 5 – Support post transition

If you have key staff in your business who you believe have the skills, passion and attitude to become future owners, transition may be your best succession strategy.