Owning a family business and working alongside your loved ones can be an extremely rewarding career option. However even the happiest of family businesses can be torn apart if proper strategic and succession planning is not in place for the future.
A recent report which surveyed 5,000 Australian family-owned companies, found that only one-third of people believed that their business is ready to pass on. To complicate things even further, two-thirds suggested that the younger generations of their families are not interested in taking over the business.
Strategic and succession planning is crucial for family-owned businesses and sadly not many businesses take the time to sit down and do it.
Here at Harris Freidman we know all too well the heartache and financial stress a lack of strategic and succession planning can have on your business.
We have recently been involved in a matter where a successful family owned farming business did not make any written agreement in relation to succession planning and now protracted and expensive litigation is under way to resolve the dispute in the Supreme Court.
If you own a family business it is vital you ensure your business has a clear strategic plan for the future and any succession plans are clearly documented.