Family Business Succession Plan
Client: Heritage Metals Pty Ltd
Challenge
A second-generation family manufacturing business needed to plan ownership transition to the third generation while minimising tax and preserving family harmony.
Solution
We designed a multi-year succession plan incorporating trust restructuring, staged equity transfer, and governance frameworks.
Results
- Saved $1.2M in potential CGT through staging
- Created a family governance charter
- Smooth transition completed over 3 years
- Business value increased 30% during transition
Background
Heritage Metals is a family-owned precision manufacturing company established in 1978. The founding family wanted to transition ownership and management to the next generation while ensuring business continuity and family harmony.
The Challenge
Succession planning in family businesses is complex. Beyond the financial and tax considerations, there are emotional and relational dynamics that must be handled with care.
Our Approach
Governance Framework
We facilitated family meetings and helped establish a family governance charter that clearly defined roles, responsibilities, decision-making processes, and dispute resolution mechanisms.
Financial Structuring
We designed a staged equity transfer plan that spread the capital gains tax impact over multiple financial years, utilising small business CGT concessions where applicable.
Management Transition
We worked with both generations to create a phased management transition plan, including mentoring arrangements and external board appointments.
Results
The succession was completed over three years with minimal family friction and significant tax savings. The business continued to grow throughout the transition period.