If you start to consider your departure from business life, you must consider if the firm you have built up will have value in someone else's eyes.
A succession plan allows for your orderly exit. This means it is not left to chance and there is a plan in place which gives a degree of comfort to those involved, particularly staff.
This course is part of a series of courses based on the IFAC Guide to Practice Management for Small and Medium Sized Practices and has been produced with the permission of IFAC.
Work through the knowledge and application modules to understand the theory and exchange your ideas with your peers. Then complete the final Putting it into Practice module to create an action plan for your practice.
Course overview
Understanding succession planning
- Succession planning for the sole practitioner
- Developing your succession plan
- Your future purchaser
- Preparing for your succession plan
- Selecting your succession option
Valuation methodologies
- Valuation of your firm
- Incorporating external factors
- Valuation methods
- Capitalization of future maintainable earnings
- Capitalization rate
- Discounted cash flow
- Rule of thumb
- Net book value
Shared ownership or sale of firm?
- Options for shared ownership
- Thinking about shared ownership
- Partnerships and mergers
- Consolidation
- Sale of firm
- Sale of fee parcel
- Progressive sell-down
Internal succession plans and exit considerations
- Internal succession
- Admission of new partners
- Buyout by existing partners
- Exit considerations
Putting it into practice
- This module helps you put the learning from this course into practice in
your firm.