Very few businesses will see their management team stay the same from the start to the end of the business. Age demographics may see experienced team members retire, or some may move to competitors or set up their own business. As businesses grow, you may need to recruit sales directors or financial directors to handle a larger or more complex operations.
Any significant changes requires careful management. Tax efficient compensation packages for those leaving, and attractive packages to attract new ones, can be complex. Managing the cultural and people dynamics when there is change at the top, can be hard, and this may extend to handling key customers and suppliers that could be affected, as well as reassuring the bank or other funders.
There is a natural reluctance to change, and it is important to consider all the key stakeholders to understand any concerns they may have and to address these as much as possible.
New people often bring new ideas, and that can be hugely positive but also disruptive.
We have worked with numerous clients to help manage these situations so that financial, tax and commercial impacts are understood and adapted as appropriate.