Business succession planning is ultimately about two key things – ownership succession and management succession and these do not necessarily need to be related:
Ownership succession is about handling the equity you are in the business and how to pass it on sell it or structured appropriately for the future.
Management succession relates to your ability to see the business dependence upon you be reduced and other key people within the business incentivised to take on a management role and thereby reduce your involvement.
Business succession planning has been shown to improve performance and profitability when communicated effectively to all key stakeholders.
Exit Options
All business owners have exit options – some good – some not so good – and most importantly some appropriate to the business and some not !
The key is to select the most appropriate exit option for you & your business. For example, very few business owners should ever consider listing on the ASX or similar – as our model shows it is expensive, time consuming, risky and complicated – but it can bring a higher reward…
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Involuntary Succession
Whilst most of the material on this site talks about the long term strategic planning aspect of Succession Planning and the success of plans conducted over ten years or longer – It is also important to recognise that, based on statistics, if we have a plan over 10 years with at least 4 people involved unfortunately something could well go wrong before the plan is completed…
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Planning Your Getaway
Succession Planning is about taking a considered approach to your business exit strategy. Without it, the value of your business may retire when you do, says Craig West.
MOST BUSINESS OWNERS go into business not only to earn an income, but (perhaps more importantly) to build the value of the business and sell it. In fact, more than half of all small business owners in Australia plan to use their business as the primary source of funding for their retirement. The average age of family business owners in NSW today is 56 years – so for many, retirement is not too far off…
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Real Estate and Succession
Like the rest of the business community owners of real estate businesses nationally are aging and they need a viable exit option. Often that option exists within – most have key staff within the business who are vital to the success of the business and many of whom are also keen to “run their own show.”…
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Succession Planning: A Big Issue!
Succession planning is about taking a strategic approach to your business exit. Without it, the value in your business will retire when you do. Story by Craig West.
Business succession planning is a big issue for many Baby Boomers approaching retirement age. Why? The average age of a family business owner in NSW is now over 58 years old, and 68% of them plan to exit their business in less than 10 years time…
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Succession Roadblocks
There is much literature on succession planning, with most of it focusing on the mechanics of the “transaction” and looking at various aspects of what is generally a complicated and multidiscipline strategic issue for business owners. Gersick et al ( 1997 ) remark “Succession is not one thing but many. It is not a single event but a process.”In the realm of family owned businesses (FOB) much work has been done in terms of the different issues facing FOBs as they approach succession and the varying outcomes as a result.
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