Business Succession strategies give peace of mind
A recent report conducted cooperatively by the major accounting firm KPMG with Family Business Australia, reveals that there is a high degree of satisfaction experienced by most small (family) business owners, it also identified that the absence of adequate business succession strategies is a source of concern. The report also identified a number of business strengths. A major threat to the longevity and success of these businesses is identified by them as ‘a lack of succession planning’. The key take-outs from the report are highlighted in the ‘Family Business Survey 2013 key findings’ video.
Having well-documented and communicated business succession strategies in place are important for the long-term success of any business: it gives peace of mind to –
- Key stakeholders (including staff, suppliers, financiers and family);
- Successors in the event of an untimely event impacting on the key business owner/ operator; and
- The business principal that eventual retirement can be facilitated.
We have published a number of articles relevant to this topic on the Continuum Financial Planners Pty Ltd website over the past few years. The few selected below provide help with the practicalities of dealing with some business succession planning/ strategy issues1 –
- Ensuring a successful business exit. (21.06.2012)
- Strategic planning for exit. (13.01.2010)
- Providing for an unexpected exit. (28.12.2011)
- Formal preparation for the unexpected-1. (09.02.2010)
- Survivor issues around unexpected exits. (07.12.2011)
- Formal preparation for the unexpected-2. (14.01/2010)
Finding helpful material on this important small/ family business topic takes some time and some discernment: a couple of useful sources we located include:
- Small Business Development Corporation, WA – (which raises some key questions for consideration by entrepreneurs and business owners)
- Australian Government’s Business Resource site – (which includes a link to a more comprehensive template for the development of your succession plan)
What is apparent from reading through all of the material referenced above is that the successful development of a succession strategy is best undertaken as a collaborative effort involving the owner (possibly including members of the family), lawyers, accountants and in appropriate circumstances, financial planners. Coincidentally, all of these professional advisors may also contribute to a useful ‘advisory board’ for the operation of the business – a corporate governance mechanism also mentioned in the 2013 Report mentioned above.
Our principals have experience in this area and have established networks with lawyers and accountants with expertise and experience in advising small (and particularly, family) businesses: to access these networks, please Contact Us and be assured that ‘we listen, we understand – and we have solutions’ to this and other wealth management needs that may be confronting you.
1 We have checked them over for current relevance and are satisfied that at the time of this post, they are still applicable; and the links correct to the intended articles/ posts.