Just as Santa Claus meticulously prepares his list of who's been naughty or nice, businesses should also be careful of the tax implications of their festive cheer.
Family businesses account for more than two thirds of all businesses in Australia and employ half of the country’s workforce. They form an integral part of the economy, and their unique dynamics mean that many business owners hope to pass the baton to the next generation.
Successful businesses in Australia often span multiple generations. Wealth, once created, should enable current and future generations to build long-term financial stability for the family. However, research shows that only 40 per cent of established family businesses survive the transition to the second generation. Beyond that, only 13 per cent survive to the third generation, and just 3 per cent make it to the fourth generation and beyond.
Amongst the many challenges of running a successful business, succession is often overlooked or avoided. It can be an emotionally charged topic that is difficult for families to discuss. While it may be an awkward topic to bring up, the reality is that succession is one of the biggest risks to the ongoing viability of a family business.
How we help clients
We understand that 'family' brings a dynamic set of challenges and opportunities. Therefore, we take a long-term approach to understanding where you are now and where you want your business to grow and evolve. Additionally, we recognise that no two family businesses are the same, and that discretion and confidentiality, with a trusted adviser who understands the family’s values, purpose, and more, are of the utmost importance.
HLB Mann Judd’s family business experts can provide objective support in the following:
- Family business succession planning
- Generational transition planning, business coaching and mentoring
- Assistance with the development and implementation of a family charter, family forums, family councils and advisory boards
- Private wealth management and family offices
- Tax planning strategies to help protect the family legacy
- Responsive financial, accounting and business advisory support
- Operational and strategic management structuring: family versus independent management
- Risk mitigation strategies, including asset protection, diversification and insurance
- Deal and growth strategies through mergers and acquisitions
- External advice on family issues and conflict resolution processes.