Partner Article

Planning for the next chapter: S&W

S&W
www.swgroup.com
LinkedIn: S&W Group
Photography: Andrew Lowe

Succession planning is about far more than deciding when to step away from a business. It is a long-term process that gives owners the time, flexibility and confidence to shape what comes next on their own terms. Here, Raj Nayyar, Emma Glover and Kelly Morgan, of professional services firm S&W, speak to Peter Anderson about helping business owners plan for the future, navigating an evolving tax landscape and how joining a growing national firm has enabled them to deliver even greater value for clients.

As any Year 7 pupil studying the Norman Conquest will tell you, a disputed succession rarely ends well.

Edward the Confessor’s reluctance – or inability – to determine who should succeed him plunged England into a bitter struggle for the throne that culminated in invasion and the end of Anglo-Saxon rule.

Thankfully, the consequences of poor succession planning in today’s business world are rarely quite so dramatic.

Yet it is not difficult to draw parallels.

There are countless examples of business owners whose departure, whatever the circumstances, has created uncertainty, conflict and avoidable costs because too little thought had been given to what came next.

It is a scenario S&W partners Emma Glover and Kelly Morgan, together with business tax director Raj Nayyar, encounter regularly.

Between them, they have helped countless business owners navigate the complexities of succession planning and, while no two businesses are alike, they are unanimous on one point: the earlier that conversations begin, the more likely it is that the right outcome can be achieved.

Raj, who advises owner-managed businesses on tax matters from start-up and growth through to succession and exit, believes one of the biggest misconceptions surrounding succession planning is that it begins when retirement is approaching.

He says: “The strongest succession plans are built alongside the business.

“People often think succession is simply about passing a business to the next generation, but that’s only one option.

“It could be a sale to a third-party, a management buyout, an employee ownership trust or private equity investment.

“The earlier you start thinking about those possibilities, the more choices you’ll have and the better placed you’ll be to achieve the outcome that’s right for you.”

Drawing on years of advising families and business owners, Emma says the biggest benefit of starting early is the freedom it gives people to explore their options before circumstances begin to dictate the outcome.

She adds: “Even when you’ve got school-age children, it’s not too early because you can make the most of all the opportunities open to you.

“It also helps you know what goal you’re working towards.

“The key is that you stay in control of the process.

“If you leave it too late, you might become ill, find yourself under pressure to sell or simply discover that many of the options you once had are no longer available.

“Forward planning is the most important thing.”

Kelly, who joined S&W with Emma following the firm’s acquisition of Peppercorn Tax last year, says many business owners underestimate just how quickly their room for manoeuvre can disappear.

She says: “Once you’re committed to a sale or an exit, there are often fewer opportunities to put the right structures in place.

“That’s why those conversations are so important at an early stage.”

That message has become even more pertinent in recent months.

Against a backdrop of significant tax changes, business owners are having to navigate a series of reforms.

Measures announced in the 2024 Autumn Budget, including changes to business and agricultural property relief, and plans to bring unused pension funds within the scope of inheritance tax from April 2027, have prompted many business owners to reassess their long-term succession plans.

Yet Raj says tax should never become the sole dictator of succession planning.

He says: “It’s easy to focus on the latest tax changes, but they shouldn’t drive every decision.

“Tax is one consideration, but it isn’t the whole picture.

“The tax rules will change in the future, but if you’ve built a plan around the client’s objectives, you’ve got something that’s much more robust.”

That people-first approach is something Emma and Kelly have championed throughout their careers.

Emma says: “People often think our role is about tax, but it’s really about people.

“You have to listen and understand what’s important to them and what they’re ultimately trying to achieve.”

Kelly adds: “These are often deeply personal conversations involving families, employees and businesses that have taken decades to build, so empathy is just as important as the advice itself.

“A big part of our job is helping people understand what can often be very complex issues, taking the time to explain their options and giving them the confidence to make the right decisions.

“The technical side is important, but it’s the relationship with the client that allows you to deliver it well.”

Being part of a national firm has also expanded what Raj, Emma and Kelly are able to offer clients, with the move giving them access to specialists from across the UK while retaining the personal relationships that remain at the heart of their approach.

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Kelly says: “One of the biggest advantages of being part of S&W is the breadth of expertise we can draw on.

“As well as being able to offer services we simply couldn’t before, such as corporate finance, we also have access to colleagues across the country with experience in every area of tax.

“No matter what the question, I know there’s someone who has encountered that situation before and can help us find the best solution.”

Raj, who has spent his career advising businesses in Newcastle and joined S&W through its acquisition of Evelyn Partners’ professional services business, agrees the firm’s expanded capabilities ultimately translate into better outcomes for clients.

He adds: “We can support clients throughout the entire lifecycle of their business.

“Whether it’s raising finance, planning for growth, bringing in employees, preparing for a sale or thinking about what comes next, we have the expertise to help at every stage.

“It’s not about having a one-size-fits-all solution.

“Every client has different objectives, and our role is to understand those objectives, keep an open mind and help them achieve the best possible outcome in the most tax-efficient way.

“Ultimately, that’s what succession planning is all about – helping people make the right decisions at the right time, so they’re in the strongest possible position for whatever comes next.”

For more information about S&W and how its expert services could support your succession planning goals, visit the website at the top of this article or email emma.glover@swgroup.com 

This was posted in Bdaily's Members' News section by N Magazine .