Succession strategy essential for success

Written on the 8 March 2010

ONE of Queensland’s top financial planners says Australian SMEs are potentially risking their retirement assets by failing to establish a proper business succession plan.

Wealthfarm Financial Planners founding director Nicholas Sinclair says as an essential strategy to maximise businesses value, it’s never too early to think about a business succession plan.

“For business owners, their business or interest in a business is likely to be their biggest asset or retirement nest egg,” says Sinclair.

“The owners who are continuing in the business or taking over the running of the business need a smooth transition in ownership to essentially maximise business growth and value and to ensure the survival of the business.”

Yet for the Southport-based agency, who also have offices in Brisbane and Mackay, the lack of business succession planning in Australia is surprising.

“The Cameron Research Group periodically conducts research of Australian SMEs and their research released in 2008 showed that while almost 70 per cent of SME owners plan to exit their business in the next decade, only 10 per cent have a documented business succession plan,” says Sinclair.

Wealthfarm lists some advantages of developing a business succession plan as ensuring continual growth in a bad market or through illness by using appropriate insurances, and developing an attractive foundation allowing a smooth and profitable business exit.

“Our role as financial advisers is to identify your needs and assist you through the process to ensure your business and your future is protected,” says Sinclair.

“It is important to be aware of the value of succession planning and particularly planning for involuntary succession events such death, disablement or trauma of an owner.”


Latest News

1700 BRISBANE APARTMENTS NOW MANAGED BY FORTUNE 500 COMPANY JLL

MULTINATIONAL and Fortune 500 company JLL (NYSE: JLL) has expanded its Australian dominance in the property managemen...

HARVEY NORMAN HITS OUT AT 'FALSE NEWS' OF ASIC INVESTIGATION

RETAIL giant Harvey Norman (ASX: HVN) has vehemently rejected reports its accounts are under investigation by ASIC, s...

RARE GOOD NEWS FOR SLATER AND GORDON AS ASIC CLOSES INVESTIGATION

ASIC has cleared Slater and Gordon of deliberately falsifying its accounts after a three-month investigation.

It s...

Q & A WITH FACEBOOK GURU ANDY MCKEON AS HE JOINS AUSTRALIAN SOFTWARE COMPANY LIVETILES

HE was creative director at Apple under the legendary Steve Jobs, and is now a senior Facebook executive. In his n...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter