Business lifecycle stages
As our client we will work with you directly to build a financial plan that works for you, in the long term, as you progress through changing life stages. With this in mind we work to our client segmentation which allows us to tailor our service to your specific requirements throughout your financial journey.
Within the provision of financial advice, we also recognise that every client is different and thus we can offer Transactional or one‐off advice. This would include a straightforward advisory service centred on your financial goals and objectives that require focused analysis and recommendations with limited ongoing servicing.
YOUR TIMELINE
What business lifecycle stage are you?
Business lifecycle is the progression of a business in stages over time and can be broken down into 4 key stages, Enhance, Protect, Extract and Exit.
At AMFA, we are here to help UK businesses face the challenges each lifecycle stage brings, with each stage requiring its own different financial management practices. Let’s explore each stage and some financial planning products that may be applicable.
LIFE STAGE 1 ENHANCE
Businesses in the Enhance stage are looking to take their business to the next level, with a focus on attracting key personnel, improving sales and operations and building their assets for the future.
At this stage, businesses at the Enhance stage may benefit from:
- Pension planning: Benefit directors with tax-efficient contributions, whilst providing valuable employee benefits to retain and motivate employees
- Employee benefits: Attract and retain employees with benefits such as group pension schemes, death in service benefits and income protection
- Business protection: Provides peace of mind for directors and their families in the event of ill health or death
- Succession planning: Ensures the smooth transition of ownership and management of the business to protect the interests of the directors and their families
LIFE STAGE 2 PROTECT
Financial protection for your business and staff through insurance and medical plans
At this stage, businesses at the Protect stage may benefit from:
- Key person insurance: Provides protection to the business against the loss of a key employee or director due to death or ill health
- Shareholder protection: Ensures the continuity of the business in the event of the death of a shareholder, providing benefits to the deceased’s family and protecting the business from being sold to an outside party
- Relevant life insurance: Provides a tax-efficient way for the company to provide life insurance as an employee benefit, benefitting both directors and employees
- Business loan protection: Provides protection to the business against the loss of a key person who is responsible for business loans
LIFE STAGE 3 EXTRACT
Extract value from the business whilst maintaining a secure and stable future for both its employees and directors
At this stage, businesses at the Extract stage may benefit from:
- Shareholder agreements: Provides a legally binding framework for the shareholders, including arrangements for the extraction of value from the business
- Succession planning: Ensures that the business is in a strong position for the extraction of value, including a well-structured exit strategy for the directors
- Capital gains tax planning: Maximises the value extracted from the business while minimising the tax liabilities for the directors
- Retirement planning: Enables directors to extract value from the business and plan for their retirement whilst ensuring a secure future for employees
LIFE STAGE 4 EXIT
Readying your business for a change ownership
At this stage, businesses at the Exit stage may benefit from:
- Business valuation: Helps the directors to understand the value of the business and plan for a successful exit
- Succession planning: Ensures the smooth transition of ownership and management of the business
- Tax planning: Minimises the tax liabilities on the sale of the business, benefitting both directors and employees
- Retirement planning: Helps the directors to plan for their retirement, including the disposal of their shares in the business
- Enhance
-
LIFE STAGE 1 ENHANCE
Businesses in the Enhance stage are looking to take their business to the next level, with a focus on attracting key personnel, improving sales and operations and building their assets for the future.
At this stage, businesses at the Enhance stage may benefit from:
- Pension planning: Benefit directors with tax-efficient contributions, whilst providing valuable employee benefits to retain and motivate employees
- Employee benefits: Attract and retain employees with benefits such as group pension schemes, death in service benefits and income protection
- Business protection: Provides peace of mind for directors and their families in the event of ill health or death
- Succession planning: Ensures the smooth transition of ownership and management of the business to protect the interests of the directors and their families
- Protect
-
LIFE STAGE 2 PROTECT
Financial protection for your business and staff through insurance and medical plans
At this stage, businesses at the Protect stage may benefit from:
- Key person insurance: Provides protection to the business against the loss of a key employee or director due to death or ill health
- Shareholder protection: Ensures the continuity of the business in the event of the death of a shareholder, providing benefits to the deceased’s family and protecting the business from being sold to an outside party
- Relevant life insurance: Provides a tax-efficient way for the company to provide life insurance as an employee benefit, benefitting both directors and employees
- Business loan protection: Provides protection to the business against the loss of a key person who is responsible for business loans
- Extract
-
LIFE STAGE 3 EXTRACT
Extract value from the business whilst maintaining a secure and stable future for both its employees and directors
At this stage, businesses at the Extract stage may benefit from:
- Shareholder agreements: Provides a legally binding framework for the shareholders, including arrangements for the extraction of value from the business
- Succession planning: Ensures that the business is in a strong position for the extraction of value, including a well-structured exit strategy for the directors
- Capital gains tax planning: Maximises the value extracted from the business while minimising the tax liabilities for the directors
- Retirement planning: Enables directors to extract value from the business and plan for their retirement whilst ensuring a secure future for employees
- Exit
-
LIFE STAGE 4 EXIT
Readying your business for a change ownership
At this stage, businesses at the Exit stage may benefit from:
- Business valuation: Helps the directors to understand the value of the business and plan for a successful exit
- Succession planning: Ensures the smooth transition of ownership and management of the business
- Tax planning: Minimises the tax liabilities on the sale of the business, benefitting both directors and employees
- Retirement planning: Helps the directors to plan for their retirement, including the disposal of their shares in the business
AT AMFA, WE UNDERSTAND THAT EVERY CLIENT’S FINANCIAL JOURNEY IS UNIQUE. WE TAKE A PERSONALISED APPROACH TO FINANCIAL PLANNING, HELPING OUR CLIENTS NAVIGATE EACH STAGE OF THE INCOME ACCUMULATION CYCLE AND ACHIEVE THEIR FINANCIAL GOALS
Matt Wood
Head of Operations, AMFA
ASK FOR A NO-OBLIGATION CONSULTATION
Call 02380 420 606 for a quick chat or contact us and we can arrange a no-obligation consultation. Whatever life-stage you are at right now, we’d love to help
Private wealth planning – your 4 key life-stages
As well as helping you plan a financial pathway through your business life, AMFA can also help you make the right choices with private wealth planning too. Find out what stage you are right now.