Receive the latest mybusiness news
Copyright © 2020 MOMENTUMMEDIA

ASBFEO, Family Business Australia release succession planning guide

Adrian Flores
Adrian Flores
10 March 2021 1 minute readShare
ASBFEO succession planning guide

The small business ombudsman and Family Business Australia have collaborated to release a guide to family business succession planning in response to research that found just 17 per cent of Australian family businesses have a plan for the future of the business.

The “Introductory Guide to Family Business Succession Planning” provides a step-by-step guide to passing the family business on to the next generation.

A recent report found that 54 per cent of family businesses have no documented succession plan in place and no retirement plan for the current CEO.

Small business ombudsman Kate Carnell called the trend “particularly worrying”, pointing to the ASBFEO office’s Small Business Counts report that found more than 60 per cent of employing small business owners are approaching retirement age.

As a result, Ms Carnell said there has never been a more important time to initiate a succession plan, given the highest proportion of business owners are aged between 45 and 59 years.

“Australia’s most successful family business stories — and there are many — are a result of well-executed succession planning,” Ms Carnell said.

“This generational shift presents a number of challenges for the sector and the economy more broadly, as some business owners may find it difficult to attract a buyer.

“It really highlights the need for meticulous succession planning for those family business owners who are planning to retire in the coming years.”

Family Business Australia chief executive Greg Griffith said succession planning can be challenging, but with the right approach, supported by quality information and advice, rewarding outcomes can be achieved.

“Our guide provides a great starting point for families in business to consider the what, why and how of transitioning the business to the next generation,” he said.

Mr Griffith said the guide also offers tips on how to handle tense conversations that can arise between family members throughout the transition phase.

“The key to families working well together is to have really open and honest communication — which can be difficult when your boss, colleague or direct report is also a member of your family,” Mr Griffith said.

“Our succession planning guide offers practical tips to ensure an orderly transition process.”    

Businesses can access the “Introductory Guide to Family Business Succession Planning” on both the Family Business Australia’s and the Australian Small Business and Family Enterprise Ombudsman’s websites.

ASBFEO, Family Business Australia release succession planning guide
mybusiness logo
Adrian Flores
Adrian Flores

Adrian Flores is the deputy editor of MyBusiness. Before that, he was the deputy editor for SMSF Adviser as well as features editor for ifa (Independent Financial Adviser), InvestorDaily, Risk Adviser, Fintech Business and Adviser Innovation.

You can email Adrian at [email protected].

Leave a Comment

Latest poll

How satisfied are you with the SME measures in the federal budget?