BSP Services

Succession planning by its nature works in a relatively narrow business field but in great depth. In general terms, we will be introduced to our clients through an existing client advisor. In the majority of cases that advisor will be the business accountant.

The information contained in those documents, clarification in a general sense from the accountant, and the information provided during the initial client meeting, will allow BSP to understand the scope of work you require and the associated costs to achieve that. BSP will charge a small discovery fee for this work, which is fully credited to succession planning costs and charges following the client authorisation to proceed.

Typically, the Scope of Work will be covered by the following nine steps:

  1. Initial research – this can include face to face meetings with your clients and yourselves to ensure all documents and relevant information is gathered from clients and advisers
  2. Asset/Litigation protection – protection of personal assets from trading risk
  3. An agreed industry standard, or an agreed enterprise valuation formula – this is a standard default clause based on a multiple of earnings before income tax multiplied by a pre-agreed cap rate. In the end it has to be agreed by all concerned.
  4. An agreed vendor payment schedule (VPS) for an outgoing party. Regardless of why a shareowner departs, including planned retirement, sufficient cash to purchase equity is unlikely to be readily available. The VPS forms part of the legal agreement and allows the business to carry on with a budgeted purchase of the outgoing shareowner’s equity.
  5. Determine Immediate exit and generational succession strategies
  6. Management of intellectual property
  7. Management of any insurance benefits. BSP will provide minimum benefits & policy owners, to be passed on to your regular insurance provider, or one of the experts we can recommend.
  8. Legal briefing & liaison with law firms
  9. Facilitation of new or up graded Wills for all parties associated with the succession agreement
  10. Estate Planning for shareowners’ families when requested.
Analysis Elements