Succession Planning shortfalls

Jan 12, 2014 | Leadership & Culture

Succession Planning shortfalls

“Currently Family Business wealth is estimated at $3.6 Trillion, (more than 5 times the value of domestic ASX companies) and transition of wealth in the next 10 years is estimated to be $1.5 Trillion”

24% of private businesses will change generation in the next 5 years, 32% in the next 6 to 10 years.

Succession planning is crucial for any company but particularly at the moment for the survival of small businesses.

  • 77% have no Management Succession Plan
  • 76% have no Future Ownership Plan
  • 50% will sell
  • 68% of CEOs will retire in the next 10 years >
  • 75% have not sought external advice for Succession Planning
  • 32% (ONLY!) will achieve transition from first to second generation, 16% from second to third generation
  • 45% have not yet nominated a successor
  • 43%think it is too early to develop a succession plan.
  • 34% assumed a family member would take over
  • 33% of people that plan to hand a business over to a family member have a succession plan.



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