Business Succession strategies give peace of mind
A report conducted by accounting firm KPMG in collaboration with Family Business Australia, reveals that there is a high degree of satisfaction experienced by most small (family) business owners. That report identified that the absence of adequate business succession strategies is a source of concern. It also identified a number of business strengths.
A major threat to the successful longevity of these businesses was identified as ‘a lack of succession planning’. The key take-outs from the report are highlighted in the ‘Family Business Survey 2013 key findings’ video.
Documentation for certainty
Having well-documented and communicated business succession strategies in place are important for the long-term success of any business. Peace of mind is provided 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 several articles relevant to this topic on the Continuum Financial Planners website. The few selected below provide help with the practicalities of dealing with some business succession planning/ strategy issues1 –
- Ensuring a successful business exit.
- Strategic planning for exit.
- Providing for an unexpected exit.
- Formal preparation for the unexpected-1.
- Survivor issues around unexpected exits.
- Formal preparation for the unexpected-2.
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. This site raises some key questions for consideration by entrepreneurs and business owners.
- Australian Government’s Business Resource site, This site includes a link to a more comprehensive template for the development of your succession plan.
Some take-outs
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 advisers 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:
- call our office on 07-34213456; or
- use the linked Book A Meeting facility to make an appointment at your convenience.
The team at Continuum Financial Planners work to the mantra 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.
(This article was first posted in November 2013. It has been occasionally refreshed/ updated, most recently in August 2024.)
