This article is from page 57 of the 2005-09-27 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 57 JPG
MORE than seven in ten family businesses go to the wall when they are passed on from parent to child, people attending a business seminar in Ennis were told.
Ennis Chamber of Commerce played host to a workshop in associ- ation with Ernst and Young, aimed at addressing and combatting the
high failure rate of businesses in County Clare as they transfer to the next generation or to a third party. Outlining the importance of the workshop, President John Galvin said, “a large proportion of Ireland’s indigenous businesses are owned or managed at family level, but 72 per cent of these companies fail once their founder hands over the busi- ness according to research by the
IMI. This is mainly due to poor or no succession planning.”
Lisa Doyle, a specialist in succes- sion planning with Ernst & Young told the business people attending the event at the Temple Gate Ho- tel that “most small business own- ers in County Clare will eventually face the challenge of transferring or selling their business to family members or third parties. We con-
sistently find that business owners with succession strategies have a significant tax advantage, maxim- ise their company value and enjoy the re-assurance that their business will continue to thrive.”
At the Breakfast Briefing work- shop, attendees were given advice on how to achieve a successful transfer to the next generation, capi- talise on the opportunities available
and avoid loss of control and the de- mise of their family business.
Topics covered included the re- tirement of the business owner /manager, planning an exit strat- egy, the recruitment of a successor, taxation for succession and legal and financial aspects of succession. Attendees will also be advised on the sale of equity and takeovers and buyouts.