Succession Planning and Management Blog

A recent national online survey of small and medium sized enterprises conducted by KPMG, provides a picture of how businesses are responding to the changed economic environment and what the outlook is for 2009. Of great interest to us should be the number of people surveyed who are looking at acquisitions or buying assets from competitors. …continue reading

According to some recent research by AXA and Monash University, family business and succession are not always a healthy mix – in Victoria alone of third or forth generation family businesses:

• 33.7% Have a succession plan for the future ownership of the business
• 15.6% Have an ownership succession plan in writing
• 9.4% Have an ownership succession plan implemented

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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.” …continue reading

In the recently published BRW ANZ Private Business Research conducted in late 2008 an amazing lack of realism from many small business owners is highlighted. Over 68 % of business owners saw no barriers to exit when surveyed. Despite a trade sale being the most likely form of exit (38 % of business owners), few respondents perceived any difficulty in finding a buyer !!!
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A specific area of concern and interest is the utilisation of employee share plans and other equity plans to assist in funding and implementing succession. Australia lags behind both Europe and the US in the uptake of employee equity schemes (in all forms). Anecdotal evidence suggests this may be a substantial stimulus for implementing business succession planning and a substantial benefit to employer and employee alike. …continue reading