Small Business Focus

How to plan the handing over of the family-business to the next generation

Planning for succession is a critical challenge family-owned businesses face.

Successful family business succession planning is also an opportunity to create a multi-generational entity.

The Money Show’s Bruce Whitfield interviewed Johan Blignaut, Managing Partner at Grant Thornton Pretoria, for his weekly "Small Business Focus" feature.

Scroll down for quotes from the audio below.

About 80% of businesses are privately held. Of those about 70% to 80% are family-owned.

Johan Blignaut, Managing Partner at Grant Thornton Pretoria

Family dynamics getting in the way is the biggest challenge many of them face.

Johan Blignaut, Managing Partner at Grant Thornton Pretoria

If you have a dysfunctional family life it is virtually impossible to have a functional business life.

Johan Blignaut, Managing Partner at Grant Thornton Pretoria

Family-owned businesses are the backbone of the world economy.

Johan Blignaut, Managing Partner at Grant Thornton Pretoria

You have to separate the family dynamics from the business dynamics. You need to consider skillsets.

Johan Blignaut, Managing Partner at Grant Thornton Pretoria

A family business is as complex as the people who make it up.

Johan Blignaut, Managing Partner at Grant Thornton Pretoria

You have to pay market related salaries to family members. This must be separate from dividends on equity.

Johan Blignaut, Managing Partner at Grant Thornton Pretoria

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This article first appeared on 702 : How to plan the handing over of the family-business to the next generation


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