Baker Tilly International Research Indicates Keeping Harmony in the Family a Top Priority When Planning Succession of the Business

29 May 2013

Baker Tilly International in co-operation with Baker Tilly Pitcher Partners and Swinburne University, has taken a closer look to both the sociological and economic implications for the family business succession process. With the research ongoing, here is a first look at the initial results:

Main triggers for undertaking succession planning?

  • Owner ready to step down
  • Taxation and estate planning advice
  • Next generation ready to step up

At the outset, what were the most important considerations?

  • Continuity of the business
  • Ongoing jobs for my employees
  • Family harmony

What were the main challenges to succession planning?

  • The capacity of the business to provide adequate financial returns, support retirement and support the next generation
  • The next generation lacking the necessary skills, not being interested or not being old enough

What is happening with the business when succession completed?

  • 57% said the business will be kept in the family
  • 27% said the business will be sold
  • 16% are unsure what will happen

Where the business is retained, who will be the next CEO?

  • 44% indicated it will be a family member
  • 36% said a non-family member
  • 20% are unsure

If you wish to participate in this research, please visit https://www.research.net/s/BTISuccessionSurvey

Read the full article First Look: Developing A New Map For Effective Business Succession in Family Businesses published in the European Business Review.

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