Succession planning isn’t an event, it’s a process. And it’s a process that presents one of the biggest challenges to farming families around the country.
Passing on the management and/or ownership of a farming operation to the next generation is complicated, and many family units struggle to navigate the various financial and emotional obstacles involved in this process. To avoid the conflict, or the stress, some may even avoid discussing the prospect altogether.
But it doesn’t always have to be a painful process.
Take the example of a traditional cattle farming family from regional New South Wales that recently decided to execute a succession plan, which involved dividing the family farm equally into two operations for two brothers. Prior to this event, the family had only ever used tax and accounting compliance services for their farming business, and the prospect of dividing the farm seemed overwhelming from a financial planning perspective.
However, through a single point of contact, their trusted adviser, the family was able to access a team of financial and business advisers who were experienced in succession planning. Through this business advisory service, the farming operation was successfully restructured, and while the brothers have chosen to farm together for now, they are appropriately set up for the future to split the operation without drama if either of them ever want to run their cattle operation separately.
The Findex Family Office is a revolutionary financial offering that gives individuals and businesses in the agri-sector a single point of contactCrowe Horwath
The above case study is one of thousands of agribusinesses that are supported by Findex’s Family Office service. Through access to a comprehensive suite of services, the family farming business has successfully been corporatised, with detailed operational budgets created for the next two years. Financial structures are in place, and the family, their financial advisers and the bank are all very comfortable with the succession plan and the financial plan surrounding it. As a result, the farm’s next land acquisition has been valued at $3.5 million.
The Findex Family Office is a revolutionary financial offering that gives individuals and businesses in the agri-sector a single point of contact to build and maintain their wealth- under one umbrella. Farms, like any businesses, are fraught with options when it comes to managing financial affairs; Family Office removes the need to engage with numerous different companies and specialists to ensure various components of a farm’s finances are taken care of.
Regional Australia is the lifeblood of the Findex business, with agriculture making up almost 25 per cent of our entire client base. Our key brand, Crowe Horwath, is Australia’s leading provider of accounting and financial related services to small and medium sized enterprises, and has the largest regional footprint of any accounting and business advisory firm. Through our network of around 80 offices across the country, we are uniquely positioned to service regional and agricultural clients.
For more information on Family Office, please visit the Crowe Horwath website.