No surprises here as the thorny issue of succession is again in the news, this time in Nigeria.
Succession is a challenge the world over and family business owners and leaders need to plan early enough to maximise the chances of succeeding at succession, if that is their chosen route, or use the time wisely to build the value of the business to maximise the value for all the stakeholders going forward.
We seem to have a problem in the transition of family owned businesses from one generation to the other in Nigeria. This is a thorny issue for wealthy business families. Many of us can name family businesses that no longer exist in Nigeria. A Survey by KPMG on Family Owned Businesses says, “a family business is unique, in that it needs to keep both the needs of the family in mind with every business decision without deterring from what’s right for the business itself”. The question is, how many families have been able to achieve this balance. KPMG’s report went on to say that, “placing the family’s needs above those of the business will lead to the quick deterioration of the company, making it unlikely that it will sustain itself much further”.