Knowledge plus series i 071213

FromResearch Desk

VALUE PLUS - The Family Office

KNOWLEDGE PLUSFor Wealth

Plus+

07th December 2013

Hot Topic Of The Week

Succession Planning - Passing on the Baton

Knowledge Plus for Wealth +

Last week at the Financial Markets!!!

• SENSEX rose by 204.60 points (0.98%) and closed to 20996.53 at end of the week on the back of encouraging exit poll results.

• (FIIs) remained net buyers in equity and debt segment with net inflow of Rs. 2229.70 crores and Rs. 683.20 crores respectively.

News Impact

• Current Account Deficit (CAD) down to $5.2bn in Q2 vs. $21.8 bn in same quarter last fiscal.

• Will help to ease Inflation concern.

• Rupee will appreciate.

• HSBC Manufacturing PMI in November 2013 stood at 51.3 vs. 49.6 in October 2013.

• Positive indication of improving manufacturing activities.

• Positive for core sector companies.


Last week at the Financial Markets!!!

Price Performance of Different Asset Class

WTI Crude $/bbl

Sensex LME Copper $/MT

EURUSD Dow Jones USDINR Gold (Spot) Silver $/t oz (Spot)

-3.00%

-2.00%

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00% 5.32%

0.98% 0.95%0.85%

-0.41%

-1.66% -1.71% -2.55%


Gold and silver fell after encouraging employment news from US leading to expectation of fed tapering

Next Week in the Financial Markets..?

• Index of Industrial Production (IIP) data for October will be released on December 12th, 2013.

• Consumer Price Index (CPI)data will be released on December 12th, 2013.

• Outcome of 5 states election results on 8th December, 2013.


Hot Topic Of The Week

Succession Planning - Passing on the Baton


Introduction

• Most business owners harbour the dream of business to continue properly, successfully as well as flourish even after their lifetime.

• A succession plan is nothing but a documented roadmap to be followed in the event of the owner, partner or shareholder’s death, disability or retirement.

• An effectively developed succession plan can provide for a smooth transition in management and ownership.


Advantages• Clarity and direction for each family member for the future.

• A future map for business can ensure your business to grow and evolve into an even stronger entity.

• Eliminates confusion as to who will carry the legacy of the business when the owner is no longer available to make decisions.

• Ensures smooth transition thereby avoiding delays or disputes placing strain on the business.

• Provides focus for long term strategic planning.


Developing Succession Plan

• Key goals for the succession plan

• Deciding various pre-requisites like education, experience, skills and others.

• Timetable of the transition stages, from identifying a successor to full transfer of responsibilities.

• Contingency plans in case of unforeseen events, such as your intended successor declines the role.


Essential Wisdoms

• Make Succession Planning as a process rather than an event.

• Be professional and not protectionist.

• Provide impartial plan for the sake of the business.

• Don’t surrender business purely for wealth/tax benefits.

• Don’t demand responsibility without giving ownership.

• Don’t search for or try to create a clone of the current leader.


Conclusion

• Succession planning is a complex tool useful for estate planning. It is not an event but a process and thus requires years to effectively develop it.

• So, expert’s advice is required in developing effective succession plan and ensuring that the family business runs for the multi-generation.


THANK YOU

Research Desk

@VALUE PLUS - The Family Office

Office: (0265 -2324600,6629800) Email: [email protected] Website: www.valueplusinv.com


Knowledge plus series i 071213

Business

Transcript of Knowledge plus series i 071213