Beyond the numbers with Grant Thornton: Listen now
While some businesses would have considered continuity in the face of looming external threats like changes in legislation, climate disasters, or crime, what is often overlooked are internal risks. There may have been consideration within the business, but our Family Business Survey revealed that 48 per cent of those planning to transition do not have anyone in mind as a successor, where even less have considered the importance of succession planning should disaster strike.
For family businesses, who have tied the heart of their business to the members of their family, an additional layer of complexity is added as they must now consider the effects of disaster on their relatives, as well as their enterprise.
Succession planning is a key issue that all businesses – family-owned or not – will eventually have to face. With family businesses, where business expertise is commonly found in only a few key individuals, the unplanned loss of one or more family members due to sickness, accident or other unfortunate circumstances can not only be a tragedy to the family, but also a lethal wound to the continued success of the business.
Ensuring that a successor is not only selected, but a wide number of employees receive exposure to the required business experiences, knowledge and acumen involved with the outgoing role can assist a business in building resilience and adaptability to face the most difficult of circumstances. Even in situations where appointing a family successor is unfeasible, a business with a plan to manage contingencies around the sudden loss of an important family member will be better placed to mitigate the challenges that suddenly arise in the moment.
Succession and continuity planning can be complicated and sensitive topics. Our team has extensive experience working with family business clients to plan how they select potential successors, fund a transition process, and hand over for the next generation to preserve family values, wealth and legacy. The Family Business Survey further revealed that 27 per cent of participants do not believe the potential successor is prepared or ready to take over, and that 30 per cent have not considered leadership succession at all.
That’s where we come in. Our advisors work alongside you to educate incoming and potential leaders on business stewardship, financial acumen and good governance strategy. We ensure that in an increasingly uncertain world, family businesses can minimise disruption, overcome challenges and continue contributing to the community and environment around them.
Contact our team of experts today.
Grant Thornton uses cookies to monitor the performance of this website and improve user experience. If you are happy to accept cookies from this site, please check the box. To find out more about cookies, what they are and how we use them, please see our privacy notice, which also provides information on how to delete cookies from your hard drive.
