When SME owners delay succession planning, their business and family pay the price
In the wake of an SME owner’s death, cashflow risks and legal uncertainty can threaten business viability
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WHAT happens when a business owner dies and no one knows who’s in charge? For many small and medium-sized enterprises (SMEs), the answer is chaos. Without a clear estate and succession plan, a business with strong earnings and loyal clients can go into limbo and may even die with the owner.
A recent survey revealed that 55 per cent of family business owners in Singapore have no succession plans. Yet 81 per cent said they want to preserve their business’ legacy.
As many older SME owners approach retirement, they may hope for continuity yet lack a succession plan.
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