Listen to this episode here: Getting the right advice on succession

Welcome to TALKING NUMBERS with Paul Jansz. This is our last episode for 2021, we will come back in the new year! In this episode, we have Colin Simkin, Founder of Practice Succession, a consulting firm that focuses on providing succession solutions for accountants in public practice.

Colin is known as one of the leading brokers in the industry and has over 30 years of experience working with multi-partner firms to sole practitioners. As a succession specialist, he leads the market in helping practitioners navigate their way through their succession journey whilst achieving above-market outcomes.

Listen to the episode to find out all the important things you should consider as a business owner and leader.  Don’t forget to follow us on social media to get more educational resources.

Listen to the highlight

 

Topics

  • Prepare for succession
  • Three phases of succession
  • Succession-ready
  • Customer knowledge
  • Staff agreements
  • Acquisitions
  • Pricing models

 

Key Takeaways

The first phase is getting ready, it can take as long as you like. Then there’s the ‘finding the right fit’ phase, which is the second phase. Typically, I think it’s allowing yourself 12 months to find the right fit for your business. Finally, these is a transition phase. I strongly encourage everyone to be involved in the handover and transition of their business. Certainly, in the framing of succession outcomes, it leads to the best outcome for all parties.  – Colin

So to be succession-ready, aligning your least to your succession timetable is a really good idea. Getting your financials organised- it goes without saying, very essential. You’ll have information about your client, you’ll have their full financial records, information about the structures, assets, liabilities and debts. – Colin

You want to transfer the goodwill to whoever that will take over your business. But typically, there’s a retention piece, a financial piece involved and making sure that those clients and knowledge is retained and transitioned is really important.  – Colin

There is a myriad of strategies you can put in place in your practice to address. But if you don’t, there will likely be a cost to whoever takes over from the business. So, if you take the lead on it, and sort these matters out, it will be a far better outcome for all parties concerned. – Colin

The fit is critical. It is essential to get the right fit, the cultural fit, the service-alignment fit, which ensures the businesses will work together through that transition phase. That sort of the fit is so much more than just price. – Colin


Useful Links

Colin Simkin’s LinkedIn Profile: https://www.linkedin.com/in/colinsimkin/
Practise Succession Website: https://www.practicesuccession.com/


We want to hear from you

Whether you are just starting your practice, or you are the leader of an established organisation, it’s probably not too early to start thinking about the succession plan soon. We hope our podcast can inspire you and connect you with other like-minded people. If you are interested in content like this, please follow us on LinkedIn. If you have any comments, questions or suggestions, please contact connect@theprofessionalpartners.com.au -we always want to hear from you!