The key to successful Succession Planning

You created your business from the ground up, poured blood, sweat and tears into it, nurtured it and now retirement is looming – what happens next? If you already have an exit strategy, well done! If you're unsure, then it’s time to think about succession planning. This could be handing the reins to a new generation, having someone in the wings ready to buy you out, or selling your business. Regardless of which option you pick, you need a plan.

Developing a plan

Before you prepare your plan, you need to ask yourself two important questions:

1. What needs to be done to prepare your business for succession?

2. Do you have a timetable for handing over the business?

There are certain things you need to consider and do when developing your plan. These include:

a complete analysis of all your business’ financial and non-financial matters;
a thorough due diligence of your business risks;
looking for and removing any obstacles that might hinder succession planning; and
seeking ways to enhance your company’s value, if you're preparing for a sale.

Handing over to family member

If your plan involves handing your business over to a family member, you'll still need a careful plan to navigate the often-complex issues around this.

A family succession plan recognises and accommodates the various needs, goals, and objectives of each family member. It should avoid creating ill-feeling, and take everyone into account – those who are taking over the business, those who are not, and yourselves (what will you need from the business for your retirement?). Compromise where necessary to ensure smooth transition.

Gauge what different members of your family want from the succession process. This can help families work out how they feel, what different people want, what the business needs to thrive, how much money and equity is changing hands, and who gets what.

Selling up

You might assume that selling your business is a fairly straightforward process, but often, in reality, it’s far from straightforward. There are many businesses on the market, what makes yours stand out? Only the good ones will fetch a good price, bad ones will just sit on the market.

Assess the current position of your business - Perform internal due diligence and conduct financial and non-financial analysis.
Valuing the business with an independent party is a key part of succession planning - It’s common for there to be large gaps between an owner’s expectations and what the market is willing to pay. Do this early.
Reflect on what you can do to make your business more attractive to potential buyers - There are four key drivers of business value that need addressing: growth, profitability, efficiency and capacity, and risk management.

Succession is a journey

Developing, improving, and grooming your business is just the start. Good advisers, including accountants and lawyers, are invaluable in helping you on your journey.

Get in touch to see how we can help shape your succession plan.

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How to prepare for the end of financial year

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The end of the financial year is fast approaching, so if you’re balance date/end of financial year is 31 March, there are a few things you need to do to help us prepare your financials. Take a stocktake If your business sells products or has stock, you’ll need to do a stocktake on 31 March. If you’re a business that sells products, then you need to take a stocktake of your physical inventory. If you’re a farmer, then you need to take a physical livestock tally. Send in your EOY papers Compile a folder (digital or hard copy) with a copy of the following documents: Bank statement that shows the balance on 31 March 2025 for all your bank accounts and loans. Insurance invoices. ACC invoices. Loan statements for the year (if applicable). Any new loans or refinancing documents. Invoices for assets purchased and sold. GST workings and reports. Submit the online questionnaire You’ll also need to fill out and submit the online questionnaire. You should receive an email from us in April/May, with a link to fill out and submit the questionnaire. If you haven’t received an email with the link by the end of May, let us know.

Supporting the Heart of Dargaville and Whangārei Communities

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At Gunson McLean we are more than just a business offering financial expertise we also support our communities in Dargaville and Whangārei. By partnering with various local organisations, we help sustain and strengthen sports, recreation, and community initiatives in the region. Empowering Local Sports Clubs We understand the role sports play in bringing people together, promoting teamwork, and supporting youth development. We are proud to sponsor the Old Boys Marist Rugby & Sports Club, Hikurangi Rugby Football Club Inc, Maungakaramea Hockey Club, Maungakaramea Bowling Club, Mid Western Rugby Squash Club, Kamo Rugby & Squash Club, New Zealand Vikings Rugby Football Club Inc., and the Cobham Cricket Club. Promoting Outdoor Education We also believe that outdoor education is essential for youth development and are proud to work with the charitable trust, Pātaua Outdoor Education & Recreation Trust (POERT). We have been closely involved in the Trust’s activities for the past 8 years – handlings its financial matters – and Craig Gunson is the current Treasurer. Backing Community Halls & Facilities We’re proud to support the Whareora Hall Society and Whareora Cemetery Board as well as local cycling and motorcycling groups Marsden Wheelers Cycling Club Inc., and the Whangārei Motorcycle Club. We are passionate about the causes we support, and the opportunities and growth this enables in our Dargaville and Whangārei communities.

Optimise your business by taking care of your employees

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