My name is Mark Pavy and I have known Geoff Richmond in both a professional and personal situation for over forty years. Geoff has acted initially as my accountant and then as both of our situations evolved he has become more of a business advisor and source of contacts for various situations from superannuation to legal advice.
When I first began to work for the business that I eventually came to own Geoff was the existing accountant and when the time came about for the then owners to move on (retire) he put a ‘succession plan’ to us for the existing owners to be bought out. Once the correct candidate(s) was selected and a price settled on, an agreement was drawn up to, over a period of time, allow the purchase price of the business to be paid from profit of the business. This allowed me to acquire the business without having to approach financial institutions for funds and other legal costs etc. This arrangement also allowed the existing owner to stay involved in the day to day running/management of the business to whatever extent he wished. An advantage to protect his “loan” to the incoming owner(s).
This process was again used when the time came for myself and my partner to on sell the business. Another advantage of this ‘succession plan’ was to be able to put in place managers with the opportunity to assess their ability to perform at a suitable level to ensure a smooth and successful transition of the ownership and so protection of the value and payment of the business. This component of the plan helped select successful candidates to take over and run the business and to maximize return of investment in the business.
The plan created buy Geoff also allowed us to sell half ‘share, components’ of the business once again allowing even more control to guarantee continuing income while ownership of business changed.
One of the main advantages of this system was that at all time each party involved in the process was able to maintain a high level of income, lifestyle and had at all times direct communication with each other. Both the purchaser and sellers of the business had access to the process and personal contact with Geoff as he was their accountant and was available to answer any queries that could arise in day to day business.
The lack of the need for a major input of legal documentation due to the familiarity of the various parties and the confidence in the process introduced was another major plus and with both my acquisition and sale of the business went without hassle.
As I said at the beginning I have know Geoff for more than forty years and over this time our association has changed from a purely social relationship as football teammates to a more professional relationship. As we have gotten older our personal interests have moved apart and as such we have had much decreased social interactions. However I have always enjoyed the relaxed and down to earth manner in which Geoff has been able to conduct meetings etc while still maintaining a high level of professionalism.