Read time: 1 minute
A succession plan is a strategy which determines the best way for principals to exit the practice whilst ensuring the practice continues. The plan will determine who will take over the leadership and/or ownership of the practice when you leave.
Questions which need to be considered are:
- Is the practice a sole trader, partnership, trust or company?
- Is the succession plan intended to apply to all practice partners?
- Will the practice partners be completely or only partially removed from the practice?
- Who will take over as a successor? If there is no suitable successor in the organisation, how will it attract the right person or persons?
- As the names of many architectural practices are based on the partners' or directors' names, will there need to be a name change?
- Have business systems and processes been documented to provide to potential purchasers or successors to assist them to value the business?
The federal government business website, www.business.gov.au , incorporates a succession-plan guide and template, which is a valuable aid to organising the plan.
Disclaimer
This content is provided by the Australian Institute of Architects for reference purposes and as general guidance. It does not take into account specific circumstances and should not be relied on in that way. It is not legal, financial, insurance, or other advice and you should seek independent verification or advice before relying on this content in circumstances where loss or damage may result. The Institute endeavours to publish content that is accurate at the time it is published but does not accept responsibility for content that may or has become inaccurate over time. Using this website and content is subject to the Acumen User Licence.