Family Businesses Exit Strategies Harry Kras Family Business
Family Businesses Exit Strategies Harry Kras Family Business Resource Centre www. fbrc. com. au
What is a Family Business? n n n 70% of Australian businesses Smallest to the largest Family owns and works together Combines 2 basic drivers – work and love Greatest strength and the weakness www. fbrc. com. au
Keys to Family Business Success Norman Smorgon’s 6 family business success factors… 3 P’s + 3 C’s Planning, Planning & Planning Communication, Communication & Communication www. fbrc. com. au
The Succession Planning Dilemma We all know the numbers! The Baby Boomer Stampede is upon us We see the response! Succession is rarely planned Lack of Planning = Lack of Success Potential for CHAOS www. fbrc. com. au
‘All Good Things Come to an End’ Exit Options n n n Outright sale Sell to employee Liquidate Realisation of wealth n Succession within the family Transfer of wealth Whatever the choice – planning is critical www. fbrc. com. au
Succession Planning What do n Diet, n Exercise, n & Succession Planning have in common? Great ideas… but NOT today! www. fbrc. com. au
Succession Planning It’s not a question of n IF but WHEN… ‘The only question is whether you want to take control of the process or leave it to chance? ’ www. fbrc. com. au
Succession Planning Why? Succession and retirement are confronting issues! Financial Security Resistance to Change Retirement = Death Other Stakeholders Marital Relationships www. fbrc. com. au
Succession Impacts on the Family www. fbrc. com. au
‘The Final Test of Greatness’ n n n Leadership Succession Ownership Succession Passing the baton - current leader and successor are runners in a relay race Ready, willing & able successors A leader who is excited by new challenges www. fbrc. com. au
Starting the Conversation The Power (Leader) V The Passion (Successor) www. fbrc. com. au
Starting the Conversation ‘People do things for their reasons not mine…’ www. fbrc. com. au
Starting the Conversation Now Succession ? • Running successful business • Change is inevitable • Exciting challenges • Remain in control • Head of business & family • Impact on future direction • Financial security • Mentor successors • In control of destiny • Avoid turmoil • Having fun • Pride in next generation • Uncertainty re successor • Create an exciting future • Sense of purpose • Evolution not revolution Why change? Create a legacy www. fbrc. com. au
The Current Leader n n n Creating space Financial security Meaningful purpose Developing the next passion Good health & companionship www. fbrc. com. au
The Successor n n n Ready, willing & able Develop skills Outside experience Respect for past accomplishments Working with siblings From dictatorship to democracy www. fbrc. com. au
The Good, The Bad & The Ugly FBA public events n The Grollo Story n n Daniel Grollo – Age 39 and ‘currently working on his succession plan’ Peter Brown Wines n Eliza Brown – ‘it’s selfish to leave things a mess’ www. fbrc. com. au
Successful Successions Planning 1. 2. 3. 4. 5. It’s never too early to start planning your exit strategy Whether your exit strategy is sale or succession, business growth is the vital Preparation of successors is essential – ‘ready willing and able’ Planning succession is part of life planning develop your passions In a family business you must discuss the ‘undiscussables’ www. fbrc. com. au
Summary You don’t have to do it on your own… n n Family Business Australia – www. fambiz. org. au Family business aware adviser Family Business Resource Centre – www. fbrc. com. au or call 0418 175 564 Download free Family Business Diagnostic Questions? www. fbrc. com. au
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