MGI Australian Family and Private Business Survey July 2010 key - Succession Plus

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MGI Australian Family and Private Business Survey July 2010 key

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MGI Australian Family and Private Business Survey July 2010 key

By , July 28, 2010

This recently released survey highlights several specific areas of concern for business owners:

One third of family business owners state that it will not be feasible to implement leadership succession in their family business. The likelihood of succession appeared to be minimal for a substantial percentage of families in business given that:

Over two thirds indicate the younger generation family members are not interested in actively managing the business.
Over a third indicated the current CEO is more likely to be succeeded by a non-family member;and
Only a fifth identify passing the business on to the next generation as a main motivation or objective for starting, or remaining in business.

45% of family business owners are actively planning the future sale of the business either now or later and more importantly 61.3% would seriously consider selling their business if approached with 25.2% reporting that they have been approached in the last 12 months.

Just under half ( in fact 45.2% ) of family business owner managers see themselves working in the business beyond 65 years of age with 66.1% indicating that their businesses were not exit or succession ready. Amazingly 52.2% go on to indicate they do not intend to do anything about that in the next 12 months.

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.