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

Which Employee Share Ownership Plan is right for your business? Watch our Free Webinar 

MGI Australian Family and Private Business Survey July 2010 key


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.