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Articles > Business and Financencial Planning: Dismal Family Business Survival Stats Worrisome, Finds Study
by: News Canada
Five steps to start a solid succession plan
(NC)-The statistics are worrisome. About 70 per cent of family businesses never make it to the second generation, found a recent Grant Thornton research study. A stunning 90 per cent of family companies go bust before a third generation can take over the management of the firm. Poor succession planning appears to be the primary culprit for these dismal statistics, according to the study Finding the Right Balance.
Key concerns of a succession plan for Canadian businesses need to address these five steps:
- evaluate the tax consequences of any succession plan
- consider the future economic needs of the business owner and spouse or common-law partner
- plan the best timing for the formal transfer of ownership
- think about roles for key employees, including possible ownership
- write a relevant communication of the plan to third parties and employees
- consider contingency measures for emergencies such as a sudden death
A good succession strategy can help business owners plan, preserve and pass on the hard-earned family wealth - both financial assets and the invaluable business experience of the founding generation. Visit www.GrantThornton.ca/resources for more information. Grant Thornton LLP is a leading Canadian firm of chartered accountants and management consultants with offices across Canada.
About The Author
News Canada provides a wide selection of current, ready-to-use copyright free news stories and ideas for Television, Print, Radio, and the Web.
News Canada is a niche service in public relations, offering access to print, radio, television, and now the Internet media, with ready-to-use, editorial "fill" items. Monitoring and analysis are two more of our primary services. The service supplies access to the national media for marketers in the private, the public, and the not-for-profit sectors. Your corporate and product news, consumer tips and information are packaged in a variety of ready-to-use formats and are made available to every Canadian media organization including weekly and daily newspapers, cable and commercial television stations, radio stations, as well as the Web sites Canadians visit most often. Visit News Canada and learn more about the NC services.
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