FBA survey results on dynamics of Generational Succession in Family - Succession Plus

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FBA survey results on dynamics of Generational Succession in Family

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FBA survey results on dynamics of Generational Succession in Family

By , July 3, 2010

The FBA has recently released survey results of FBA’s next generation members examining the dynamics of generational succession in family businesses. As an overview nearly 2 in3 respondents to the survey said that working in the family business was where they “always wanted to be” and fewer than 1 in 10 appeared to be reluctant participants in the business.

30% reported that formal conditions are in place dictating the entry to the family business – most focused on gaining a formal territory qualification and also gaining outside work experience. More than 75% of participants had completed some vocational territory training (significantly higher than the population at large).

A significant 85% of respondents believed that family members should compete fairly with non-family members for both promotion and career opportunities.

Virtually all survey respondents (approximately 96%) believed governance was an important element in the future of the family business, with 60% saying they would be implementing changes to the existing governance structure.
Half of all participants to the survey said they had firm plans to hand over the business to the following generation in due course, of the remainder 25% needed a trade sale, a little under 2% a management buyout and the balance (just under 24%) nominated” “other” exit option.

Half of all respondents said they intended to remain the business more than 20 years, a further 23% indicated they would be staying around for another 15 to 20 years and almost 75% of respondents will spend the majority of their career and perhaps even end their career.

Craig West

Craig West

Managing Director | Succession Plus

Craig West is a strategic accountant who has over 20 years’ experience advising business owners. His background as a CPA in public practice, provided invaluable experience in the key issues of concern to business owners. Following 6 years of study to gain two masters degrees, Craig focused on Capital Gains Tax (CGT) for business sales advising on strategic management of tax issues. This experience formed a very strong view that business owners (and often their advisers) were unprepared and unaware of the steps required to prepare a business for exit.

Craig now acts as a strategic mentor for mid-market business owners and has written four critically acclaimed books on employee incentives, succession planning, asset protection and exit strategies. Craig has conducted numerous seminars and keynote presentations throughout Australia & internationally, including adviser education programs for the Institute of Chartered Accountants and CPA Australia.