Contact: Craig Holland
Deloitte Tax Services
Partner
+61 (0) 3 9208 7586
Contact: Jane Kneebone
Deloitte Growth Solutions
Media and Communications
+61 (0) 3 9208 7389
As the majority of the Baby Boomer generation retires over the next five to 10 years, succession planning will be vital for the long-term survival of family run businesses, according to Deloitte Tax Partner, Craig Holland.
“We are about to see a huge transfer of wealth from the Baby Boomer generation, yet many family owned businesses will struggle to ensure a smooth transition of business management and ownership,” Mr Holland said.
“Studies show that fewer than 30 per cent of private businesses have an achievable succession plan in place.
“Most business owners do nothing or they choose to focus on one area in the succession planning process such as tax, which ignores many of the other key issues that need to be dealt with.
“Succession planning is more complex now as many different business, financial, and personal issues come into play.
“A good succession plan will look at a range of issues such as people and talent, family dynamics, corporate structure, estate planning, insurance and share transfer to name just a few."
The opportunities and benefits are great when succession planning is undertaken in a disciplined way.”
Deloitte today released the first of an eight-part series looking at what succession planning is, including the importance of goal-setting and understanding stakeholder concerns.
Part two of The art of business succession, series will be available in May 2007.
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