Leaving Behind the Family Business

A recent report by Pitcher Partners and Swinburne University has shown that sons are now not the only choice to be heirs to a business – daughters and other family members are increasingly becoming considered to run the business or take on the role of senior executive.

The report is titled ‘Succession Reset: Family Business Succession in the 21st Century’. The report shows that attitudes towards inheritance and what should happen to family owned business assets are changing with cultural, social and technological changes.

Dr. Richard Shrapnel who was involved in the creation of the report said:

"The traditional definitions of family business succession are no longer relevant in the current environment, with the new era focusing on the financial capacity to support a growing family, and the generational transfer of skills that create wealth and a passion for business,"

The report surveyed 2600 people, across 56 countries, over the course of four years. Bruce Billson, the Federal Minister for Small Business, will launch the report on Monday.

The report highlights some of the potential causes of this shift in attitudes, the report attributes changes to:

"the complexity of business today with globalisation, the internet and digitalisation, and the changing landscape of consumer preferences"

This means that a son may not necessarily be the best person to carry on the family business.

Around 67 percent of all businesses worldwide are family owned. The change in attitudes toward giving the person most capable of carrying on the family business, especially if this is a daughter, could make a dramatic contribution towards worldwide gender diversity.

If you are thinking about who to leave your family business to, or for any other matter relating to a will, contact Szabo Solicitors today.

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If you are thinking about who to leave your family business to, or for any other matter relating to a will, contact Szabo & Associates Solicitors today - it is important to seek expert legal advice as quickly as possible. Contact Szabo & Associates Solicitors today and speak with one of our specialist solicitors. At Szabo & Associates Solicitors we can help advise on all aspects of buying and selling a business. Call us on (02) 9281-5088 or fill in the contact form to the right of this page.