Real Estate Business Succession

[ Big shoes to fill? All it takes is a little proactive planning ]
by John Knight Published

A successful succession plan needs to be planned well in advance of the planned departure of the subject principal.  In fact, these days it is becoming more and more common for the departing principal to remain in the business for quite some time after they relinquish day-to-day operational duties.

Succession on the mind

You may have already seen the survey we did in January this year on “Optimism in Real Estate businesses”. One of the questions we asked real estate businesses was “What are the key focus areas for your business for 2015?”. Compared to 2014 we have seen a massive leap in the percentage of real estate businesses who have placed ‘Succession’ in their top areas to focus on.

Types of Succession

Some of the best forms of succession are not the ultimate sale of your business. More often now we are seeing transfer of ownership by transfer of shares or units in the entity carrying on the business. Don’t forget also to consider the intricacies of family generational succession, manager buyout or even succession in the event of an unexpected departure such as death or disablement.

Succession Diagnostic

Not sure where to start? Maybe you could complete our Succession Diagnostic to help focus your attention on the areas of your business that need focus.

Tax on Succession

There are some great tax concessions available to many real estate businesses on succession including the Small Business CGT Concessions. This area of tax though is complicated and you will need to seek expert advice on the application of these provisions. Don’t forget also about the other taxes that are relevant on succession like stamp duty and the tax payable to empty the retained profits of your trading entity.


Recently we presented on the topic of Succession in Real Estate at a round table breakfast. You may like to review a copy of the presentation slides.

If you have any questions, please do not hesitate to contact one of our real estate team members.

Check out the Succession Diagnostic worksheet here and start planning succession for your business

Download the presentation
John Knight
read more by John Knight

John uses his business improvement and strategic planning skills to help his clients improve their position and boost their profits. John helps his broad client base with his unique business improvement services, strategic planning skills and wealth of knowledge on compliance matters.

Further to his business improvement offering, John provides company and business valuations for various purposes including company purchase/ sale, entity reorganisation and matrimonial or dispute resolution.

John is an expert in all things real estate and has built a reputation in the industry for being far more than just an accountant. He also has an in depth knowledge of the Dental sector and works closely with dentists and dental practices to streamline their accounting processes.

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