Preparing for Business Succession - A Step-by-Step Guide

Planning for the future of your business isn’t just about growth—it's also about preparing for the inevitable: one day, you will exit. Whether through retirement, a sale, or passing it on to family, business succession planning ensures your hard work lives on—and that you and your beneficiaries are financially protected.

At Streamlined Accountants, we guide business owners through smart, forward-thinking succession strategies that maximise value, minimise tax, and safeguard their legacy.

Here’s our step-by-step guide to preparing for business succession—with the practical lens our clients trust us for.

1. Start With the End in Mind

Succession planning isn’t something you do a year before retirement. Ideally, you begin planning 3–5 years ahead to:

• Increase your business valuation

• Strengthen financial records and compliance

• Optimise your tax position

• Train successors or position your business for sale

Growth Hack: Align your succession plan with your current structure. Many business owners miss out on tax concessions because they didn’t restructure early enough. We help you explore options like transitioning to a company or trust structure for greater flexibility and protection.

2. Identify Your Exit Strategy

There are typically four succession paths:

• Family succession – Handing over to a child or relative

• Employee buyout – Selling to internal staff or managers

• Third-party sale – Selling to an external buyer or investor

• Wind-up – Closing the business and selling off assets

Each option comes with distinct tax implications, legal considerations, and cash flow outcomes. We'll help you weigh them up clearly.

3. Get Your Finances & Compliance in Order

Succession planning without clean books and BAS lodgements is like selling a house with no inspection. Buyers and successors will do due diligence—and red flags reduce business value.

We help you:

• Review and tidy up your financial statements

• Ensure BAS, SGC, and ATO obligations are current

• Clean up your chart of accounts for transparency

• Benchmark financials to show profitability and potential

Time-Saving Tool: We recommend cloud software like Xero + Hubdoc for real-time financial clarity—crucial when preparing for an eventual handover.

4. Reduce Tax Through Smart Structuring

One of the biggest succession pitfalls? Paying more tax than necessary.

We guide clients through:

• Capital Gains Tax (CGT) concessions – Like the Small Business CGT concessions that can significantly reduce or eliminate tax on a sale

• Restructuring – For example, transitioning from a sole trader to a company to access more favourable rates or allow share sales

• Asset protection – Separating personal and business assets before any transition

Real Case Study: One client approached us to sell their family business. With no structure in place, their projected CGT bill was over $180K. We restructured 18 months before the sale and applied the 15-year exemption—resulting in $0 capital gains tax.

5. Document Your Plan

A solid succession plan includes:

• A Buy-Sell Agreement (if you have business partners)

• An up-to-date Will and estate plan

• Succession policies and procedures to support business continuity

• Clear documentation of systems, workflows, and financials

Need help getting started? We provide practical templates and work with your legal advisors to ensure everything aligns.

6. Train, Transition & Support

Don’t underestimate the human side of succession. Whether it’s family or external successors, a planned transition period is key. Think:

• Mentoring over 12–24 months

• Delegating responsibilities gradually

• Involving successors in financial and operational decisions early

Team Tip: Document SOPs (standard operating procedures) and use systems like Asana or Notion to ensure the next generation knows how things run.

7. Review Regularly

Succession plans should be reviewed every 1–2 years, especially when:

• Business performance changes

• New stakeholders are introduced

• You alter your personal retirement timeline

We're here to help adapt your plan to changing circumstances—so your exit is as successful as your entry.

Ready to Secure Your Business Legacy?

Succession planning isn't just an exit strategy—it’s a growth and protection strategy. At Streamlined Accountants, we combine practical tools, structure insights, and tax-smart advise to prepare your business for a profitable future.

📞 Call us today on 0451 040 656

📧 Email info@streamlinedaccountants.com.au

Let’s ensure your business continues to thrive—long after you’ve stepped back.