MGI Australian Family and Private Business Survey July 2010 key
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.