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.