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Seven secrets of great family firms – smartcompany

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Seven secrets of great family firms – smartcompany

By , November 30, 2012
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Great article summarising some of the key success factors for family firms:

Interestingly in the current market secret 4 may be a great strategy to add value:

4. They acquire fewer (and smaller) companies

Many family businesses we studied favoured smaller acquisitions close to the core of their existing business or deals that involved simple geographic expansion. There were significant exceptions to this rule – when the family was convinced that its traditional sector faced structural change or disruption or when managers felt that not participating in industry consolidation might endanger the firm’s long-term survival. But generally, family companies aren’t energetic deal makers. Family businesses prefer organic growth and will often pursue partnerships or joint ventures instead of acquisitions.

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.