Is your business ready for succession or exit? Here’s how to tell
Whether you’re a sole trader, family business, or part of a growing enterprise, the day will come when you (or a key stakeholder) step away from the business. The question is—will you be ready when that day arrives?
At McMillans, we’ve helped hundreds of Gippsland business owners plan smooth exits and build lasting legacies. Here’s how to tell if your business is prepared—and what to do if it’s not.
Why succession planning matters
Succession isn’t just for retirement. It also covers:
Selling your business
Passing it to a family member or key employee
Sudden illness, death, or incapacity
Business partnerships splitting
Moving into a new venture
Without a plan, these transitions can lead to disputes, financial strain, and lost value. With the right structure in place, you can protect the business you've worked hard to build—and ensure it continues to thrive.
Signs your business isn't ready for succession
If any of the following apply, it's time to take action:
You don’t have a documented succession plan
The value of your business hasn’t been professionally assessed
No one else can perform your key roles
You haven’t talked to your family or business partner about succession
You’re unsure how ownership would transfer
You don’t know how the business would be funded during the transition
Even thriving businesses can be vulnerable if these basics aren’t in place.
Start with these succession planning essentials
At McMillans, we guide our clients through:
1. Business valuation
You need a clear, independent view of what your business is worth—whether you’re transferring to family, a partner, or selling externally.
2. Ownership structure review
Is your current structure tax-efficient and succession-ready? We assess trusts, companies, and partnerships to ensure the transition is smooth.
3. Key person risk
If something happens to you (or a co-owner), can the business survive? We help put in place contingency plans and insurances to protect business continuity.
4. Legal agreements
We coordinate with your solicitor to draft or review:
Shareholder agreements
Buy-sell agreements
Business succession deeds
Partnership agreements
5. Funding strategies
Can your successor afford to take over? Can the business afford to buy you out? We create funding strategies (often using insurance) to ensure liquidity.
Family business? Start the conversation early
Family businesses have unique challenges. Emotional dynamics, perceived entitlements, and unclear roles can cause conflict. We support business owners to:
Facilitate succession conversations with family
Identify suitable successors and define their roles
Separate family wealth from business assets
Create a long-term vision for both generations
Our experience means we can guide these conversations with objectivity and care.
Planning to sell? Get ready to maximise value
If you're looking to sell your business externally, preparation is key. A buyer will look at:
Financial performance and documentation
Systems and processes
Client or customer base
Intellectual property
Risk and compliance
We help you get your business “sale ready” with financial reports, forecasting, benchmarking, and due diligence preparation.
What if you want to exit gradually?
Not every exit is a clean break. You might want to:
Reduce your workload over time
Retain partial ownership
Stay on in an advisory role
That’s absolutely possible with the right planning. Our team can model scenarios, tax implications, and future cash flows to support your goals.
How McMillans can help
Our business advisory and succession planning experts work together to:
Clarify your goals and timeline
Create a customised succession plan
Coordinate with your legal and financial team
Guide you every step of the way
Whether your plan spans 6 months or 6 years, we’re here to support your transition.