Daily Bulletin

Business News

  • Written by Andrew Williams


Handing over a business to the next generation might seem like something that can wait, but Australian business is largely unprepared for succession – and that’s a problem.

 

Handover culture is the ingrained idea that a business needs to have a succession plan in place and somebody should be groomed to take over the leadership well in advance.

 

While that’s often a family member, handovers of a business could just as easily apply to staff, other executives or business colleagues.

 

Second Squared founders Ak Sabbagh and Lui Pangiarella say the culture of businesses being handed down from parent to child, or mentor to mentee, is far stronger overseas, in countries with long and storied histories like India in particular, where it’s been a part of their business culture from the beginning.

 

So why has handover culture bypassed Australia?

 

Mr Sabbagh says there any number of reasons – our youth as a nation, the she’ll-be-right attitude that makes up part of our national identity - but it might be based on our history.

 

“The Australia of 1788 onwards is a country that had to strike out on its own.”

 

“I think there’s an element of being a pioneer that plays into who we are and has formed a part of our attitudes.”

 

“Whatever the reason, Australian parents are much more likely to give us the opportunities and freedom to try a whole range of topics and interests when we’re young, rather than assume we’ll take over the family trade.”

 

“Outside of social attitudes, we just see this happen all the time in our capacity as business coaches and our roles as entrepreneurs within the business world.”

 

“90% of the businesses we deal with have not put any kind of handover in place to ensure the business will continue to be successful long after those at the top have gone.”

 

“And that’s a genuine economic concern – because if a handover doesn’t happen, those businesses are more likely than not to disappear. That hurts employment, that hurts economic growth, it affects people’s retirement and it hurts competition.”

 

Mr Pangiarella says that there are several steps any business can take to ensure they have a good handover in place:

  • Start early – you should be sewing the seeds for a handover up to 6 years before you exit the business
  • Groom a successor – or two – well ahead of schedule and make sure they are fully committed and knowledgeable of the business before they take over, so they can hit the ground running, and importantly this doesn’t need to be a family member
  • Ensure your business is financially prepared for any unexpected developments in the future
  • Take steps to prepare your financial future in retirement as part of your handover plan



Mr Sabbagh says the lack of handover culture is part of the reason he and Mr Pangiarella established Second Squared, which aims to give prospective business owners the tools and skills needed to take control of and grow a business.

 

Second Squared


Second Squared is a business ownership accelerator with a difference. Rather than focusing on new products or technology Second Squared is primarily focused on the core element of business success - the entrepreneur who wants to own an already established business. 


Lui Pangiarella and Ak Sabbagh work with aspiring business owners to get clear on their ultimate goals, their passion and capability, fears, blind spots and gifts. They work with them to develop the skills to accelerate their process of finding and acquiring a business that is right for them and connect them to the necessary people and resources they need along the way.


www.secondsquared.space

 

Lui Pangiarella

 

Lui is an experienced facilitator, executive coach and company director with a focus on organisational performance, strategy, culture and leadership development.

 

Over his career Lui has had significant involvement in both buy-side and sell-side corporate in a range of industries covering transport and logistics, retail, chemical manufacturing, professional services, marine and civil engineering, laboratory services, subscription-based technology services, and for purpose organisations.


Lui has been featured in the media as a commentator on business and entrepreneurship, also regularly writing about changes and trends within the industry.  He is passionate about bringing new concepts and opportunities to the Australian industry.


As a business and executive coach for more than 10 years he has worked with small businesses to grow and ultimately position the owners for a successful handover to new owners.

 

He is a Chartered Accountant and a Graduate of the AICD Company Directors Course.

Ak Sabbagh

 

Ak is an experienced business owner and founder, board advisor, director, corporate and business coach. He plays a pivotal role in enabling leaders across a diverse range of sectors , transition their businesses to the next phase of development and achieve challenging commercial objectives.

 

His experience has led him to be invited as a keynote speaker on a variety of specialist topics including leadership and employee engagement, brand positioning, product and channel development, the role of the CEO, and growing the value of assets. Along with Mr Pangiarella, he is a commentator on business and entrepreneurship.

 

He is the founding President of the European Mentoring & Coaching Council (Asia Pacific Region), established in July 2018. 

 

He is a graduate of the AICD Company Directors Course.

Writers Wanted

Australian media is failing to cover domestic violence in the right way: new research

arrow_forward

We asked children around the world what they knew about COVID. This is what they said

arrow_forward

6 Exciting E-Commerce Web Design Trends That Will Make Your Business Click in 2021

It has been more than a year since the pandemic has forced stores to close and kept us from leaving our homes, and it looks like the way we shop will never be the same again. If you are one of t...

News Co Media - avatar News Co Media

Why Hire First Page Agency For Digital Marketing

Digital marketing strategies are crucial in enhancing the growth and development of a firm. Lately, most potential clients can be found from various online platforms. Digital platforms are cost-...

News Co Media - avatar News Co Media

Parental support is about more than time off, says Multiplex

Premier construction company Multiplex has launched a new parental leave and support policy which aims to support parents during periods of leave, and bolster their longer-term career progression an...

The PR Partnership - avatar The PR Partnership

6 Fundamentals to Know When Running A Business

You started a business or stayed in business for a year. Excellent, but do you know how to build a thriving business, especially in these tough times? Below are tips that will help guide you in stee...

News Co Media - avatar News Co Media

TransferWise changes name to Wise after 10 years

Works towards meeting international banking needs of Aussie consumers, businesses and banks beyond money transfers   Melbourne, Australia, 23 February 2021 - TransferWise, the global technolog...

Wise - avatar Wise

Know the important tips in choosing an SEO agency for your business

The success of your business is based on the quality of your website and hence you need to make sure that your business website is easily navigable so that more people will enjoy spending time going t...

News Co - avatar News Co


The Conversation
INTERWEBS DIGITAL AGENCY

Politics

Morrison Government commits record $9B to social security safety net

The Morrison Government is enhancing our social security safety net by increasing support for unemployed Australians while strengthening their obligations to search for work.   From March the ...

Scott Morrison - avatar Scott Morrison

Ray Hadley's interview with Scott Morrison

RAY HADLEY: Prime Minister, good morning.    PRIME MINISTER: G’day Ray.   HADLEY: I was just referring to this story from the Courier Mail, which you’ve probably caught up with today about t...

Ray Hadley & Scott Morrison - avatar Ray Hadley & Scott Morrison

Prime Minister's Remarks to Joint Party Room

PRIME MINISTER: Well, it is great to be back in the party room, the joint party room. It’s great to have everybody back here. It’s great to officially welcome Garth who joins us. Welcome, Garth...

Scott Morrison - avatar Scott Morrison