If you’re thinking about handing over your business—whether it’s to your kids, your staff, or a new owner—there’s more to it than just deciding who takes the reins.

You’ll need to think carefully about the numbers: how much your business is worth, how the next person will pay for it, and how to make sure you don’t get stuck with a surprise tax bill.

This might sound overwhelming, but with the right advice and a bit of early planning, you can set things up so it’s smooth for everyone involved.

Why Planning the Money Side Matters

A good plan can help you:

• Get a fair price for your business
• Make sure the buyer has access to funds (so you’re not left hanging)
• Avoid paying more tax than necessary
• Set yourself up for retirement
• Keep the business running well after you leave

5 Key Money Steps in Succession Planning

1. Know What Your Business is Worth

You’ll want a professional valuation from someone who knows what they’re doing. This sets a fair price and gives you a starting point for conversations with buyers.

It’s also helpful to know what makes your business valuable—like loyal customers, steady income, or a great team. That way, you can improve those things before you sell.

2. Get Your Financials in Shape

Make sure your books are clean and up to date. That means tidy profit-and-loss statements, balance sheets, and cash flow records—ideally in cloud software like Xero or MYOB.

Regular financial reports (monthly or quarterly) can also show trends and performance. If someone wants to buy your business, they’ll want to see this.

3. Work Out How the Buyer Will Pay

Most people buying a business don’t have all the cash upfront. Some options include:

• You offer a loan they pay back over time (called vendor finance)
• They get a business loan (you’ll need good financials to help with this)
• You do a staged handover, with payments over a few years
• They use personal savings or assets to cover part of the cost

A finance broker (like our team at 123 Financial Group) can help you or the buyer find the best loan options.

4. Plan for Tax

Selling a business can trigger capital gains tax (CGT). But there are small business concessions that might reduce or even wipe out that tax—if you’re eligible.

The rules are detailed, so it’s worth getting an accountant involved early to see what you qualify for.

Also, how your business is set up (company, trust, etc.) and how the sale is funded (loan vs. equity) can affect tax. It’s best to get advice tailored to your situation.

5. Think About What’s Next For You

After you sell, you’ll want to make sure:

• You have enough to retire comfortably
• You know how to invest the money from the sale
• Your will and estate plans reflect the change

Who You’ll Need on Your Side

Selling or passing on a business isn’t something to do alone. You’ll likely need:

• An accountant to help with the numbers, tax planning, and sale structure
• A finance broker if the buyer needs funding
• A lawyer for contracts and legal advice
• A business advisor or coach to help with the transition plan

Example Scenarios: How Business Succession Can Be Structured

💡 Management Buyout with Shared Funding
In some cases, two senior managers may wish to take over a business valued at $1.8 million but lack the full amount upfront.
With a verified business valuation and well-prepared financials, a loan could be secured for part of the price—say $600,000—while the rest is arranged through vendor finance, repaid over several years.

✅ This approach allows for a smooth handover and helps ensure business continuity.

💡 Selling a Business Without the Tax Sting
Consider a retail business owner preparing to retire after nearly two decades. With a $1.2 million sale on the horizon, they may face a substantial tax bill.
By taking advantage of small business Capital Gains Tax (CGT) concessions—such as the 50% active asset reduction and retirement exemption—it’s possible to significantly reduce or even eliminate tax on the sale.

✅ With early advice, more of the sale proceeds can be retained for the next chapter of life.

Ready to Plan Your Exit?

Here’s where to start:

• Think about your goals: When do you want to step away? Who might take over?
• Get your business valued
• Clean up your financials
• Get advice on tax and funding
• Put together a plan with your team of experts

Let’s Chat

Stepping away from your business is a big move. Whether you’re thinking about it now or a few years down the track, we can help you get the money side sorted.

💬 Book a free chat with our accounting and finance team to talk through your next steps.