Feasibility Study

Succession Planning is an essential exercise for owner-managers and shareholders. When you’re ready to begin the process, it can be pretty overwhelming to pick an exit route and know for sure that it’s the best option for the shareholders and, indeed, the business going forward. This is where a Feasibility Study may provide some clarity and comfort in your decision.

A Feasibility Study exercise can help establish and communicate the outcomes of identified potential exit routes whilst also considering the shareholders' preferences (if applicable).

Tailored specifically for you, the exercise outlines the pros and cons of each exit option (we can help you narrow these down if you’re considering several), the time it may take to complete, the costs associated and the impact on the business and team.

The exercise can also consider if any shareholders are hoping to exit the business fully or remain, what would happen with any remaining shares and how new shares could be distributed. This can, of course, be difficult to navigate and keep the process progressing without the assistance of an independent third party.

General steps undertaken in the process will include the following, but this will be considered and altered depending on each unique situation and if other measures need to be introduced.

• An initial discussion is held with the shareholders to understand the current position of the business and any exit options which have initially been identified.
• Information is requested regarding shareholding percentages and financial accounts.
• One-to-one interviews are conducted with the shareholders to understand their own personal objectives and where they are on their own journey with the business; in some scenarios, some shareholders may wish to exit, and others to remain.
• Upon receiving the information requested and all shareholder interviews have been conducted, the first draft of the Feasibility Study is prepared.
• The first draft Feasibility Study report is presented to the shareholders with the aim of agreeing upon a plan to progress forward.
• If relevant, one-to-one interviews are held with the Management Team.
• Findings from the Management Team interviews are considered (if applicable), and the Feasibility Study report is altered accordingly.
• The final report is then presented to the Shareholders and Management Team so that all parties can review the options and a preferred route agreed upon.

If you want to learn more about our Feasibility Study service, please get in touch.