Business Succession

Is Transferring Your Business to the Family Member a Viable Option?

 

 

Does your family business…

  • have a written Business Plan
  • have a written Succession Plan
  • regularly update the Succession Plan, at least every five years
  • have an formal Board or advisory group
  • have an Organisation Chart
  • prepare and update a SWOT Analysis
  • have written job descriptions, including your position
  • measure employee performance
  • have strong management
  • have a recent independent valuation of your business
  • have a potential buyer for your business
  • require you to work more than 50 hours a week
  • allow you to strategize for more than 5 hours a week

Personally, do you…

  • have a will
  • have disability insurance
  • have ample life insurance
  • consider yourself financially secure
  • rely upon your business to generate retirement funds
  • feel comfortable that your family can run your business
  • feel that you can let go of your business
  • consider the success of your business or successful family relationships more important

As for your family, do you…

  • feel that your spouse could run the business if something happened to you
  • feel your family understands the demands of leadership
  • have any concerns about maintaining family harmony between those that succeed you & those that don’t
  • have children that confide in you on personal matters
  • not have any children with substance abuse/psychological problems
  • have a family Business Plan
  • have formal family business meetings
  • employ family members
  • employ spouses of family members
  • have written prerequisites/qualifications/experience for hiring of family/spouse members
  • have the same work rules for family/spouse and non-family employees
  • pay your family/spouse market wages for their work
  • have open communications with your family/spouse employees

Noel Mayis a qualified succession management advisor who can help you identify whether transferring your business to family members is your best succession strategy or whether you should seriously consider other options.
For more information, call the office on (03) 9585 7555 and ask for Noel or Amanda,
orcontact us by email.