Financial Planning

Back to The Successful Sales Strategy

Proprietors involved in day-to-day management have little time to make strategic plans and if a business has been operated by the same proprietors for a number of years they may not consider it necessary to prepare up-to-date financial information. However, such planning and provision of good quality up-to-date information is critical, not only to achieve a full price (with appropriate tax management) but also to ensure financial security.

Some of the financial planning issues to be considered include:

  • Preparing a comprehensive annual business plan which also considers your timescale for future exit.
  • Undertaking a full review of pension arrangements prior to any share sale.
  • Establishing or enhancing the funding of a self-administered pension scheme to reduce corporation tax charges prior to sale.
  • The balance between salary, dividend, bonus and pension contributions leading up to retirement.
  • A review of investment decisions made in prior years.
  • Preparation of monthly management accounts to enable the above to be more easily assessed.
  • Preparation of profit and cash flow forecasts.
  • Personal financial planning: current personal financial position and structure, and planning for the future.
  • Estate planning, wills, trusts and retirement plans.

Part Three - Property Issues