Home topics small-business-resources general General General Australians unprepared for succession Guest Author June 17, 2008 Bill Hovey asks just how prepared are you for your exit and succession from the business? Each year, linchpin succession management undertakes a proprietary survey as part of a planned longitudinal study. The proprietary research undertaken over the past four years and other industry association research completed in the last 12 months provides some interesting observations for business owners. Over the past four years, we have surveyed 1,736 private and family businesses and professional partnerships. These have been NSW-based, though not limited to NSW operations and cover a variety of industry sectors. More than 15 percent are turning over less than $1 million, whilst 26 percent are turning over between $1 million and $3 million. Significantly, few micro-businesses responded to the broader surveys. Who is prepared? • 27% of Australian family and private business owners have sought external advice concerning the succession process; just under 50% of these have a documented plan. • 10% (of the total) have consulted their accountant; 5% (of the total) have consulted their lawyer. • 65% are prepared to pay a premium for high quality up-front and ongoing advice, which takes them towards a successful succession and exit. Issues and complexities • 67% believe that dysfunctional relationships within the business and/or stakeholders will provide significant barriers to successful succession. • 84% admit to a gap between the realisable value of their business and their ‘aspirational’ value. • 64% are concerned