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.

Payright buy now, pay later

Australian fintech and payment plan provider Payright today announced its move into e-commerce enabling accredited merchants to add the payment option to the checkout in their online store. Customers ...

Christine Kardashian - avatar Christine Kardashian

Home Office Ideas To Transform Your Office Into Something Great

It's a wise decision to make your home an extension of your main office or simply a standalone office. You can save money since you’re no longer renting an office space, and you feel more relaxed ...

News Company - avatar News Company

Tips To Ensure The Best B2B Ecommerce Customer Experience

The B2B ecommerce space offers an incredible array of opportunities. It is has registered growth at more than double the size of B2C ecommerce. These tips will help you greatly in improving your cu...

News Company - avatar News Company

Multi-channel Ecommerce And Its Unparalleled Benefits

With severe competition within the ecommerce industry nowadays, exercising measures for expansion has become crucial. When you’re planning to dive into areas of growing your business into a full-fle...

News Company - avatar News Company

Top 5 Reasons Businesses Are Shifting From Magento To Shopify

Although building an online business has been made simpler by the extensive use of the internet, maintaining its success is a journey rather than a destination. It involves critical decisions made a...

News Company - avatar News Company

Deliveroo appoints Laura Huddle as Head of Commercial in Australia

Leading online food platform Deliveroo has appointed Laura Huddle as Head of Commercial in Australia, as the platform continues to invest in building a strong and experienced local leadership team...

Sinead Harding - avatar Sinead Harding


The Conversation

Politics

Prime Minister on the Alan Jones Show

ALAN JONES: Prime Minister, good morning.    PRIME MINISTER: Good morning Alan, how are you? Good to hear you back on the air.   JONES: Thank you. Thank you very much. Can I just - there's a lot...

Alan Jones - avatar Alan Jones

The Greens side with activists, not farmers

The Greens’ Agriculture Spokesperson, Senator Janet Rice, today made some disgraceful comments in relation to the Government’s tough new penalties for keyboard warriors who incite activists to inv...

Senator Bridget McKenzie - avatar Senator Bridget McKenzie

Scott Morrison interview with Alan Jones - 2GB

ALAN JONES: The Prime Minister's on the line from Melbourne, Prime Minister good morning. PRIME MINISTER: Good morning Alan ALAN JONES:  thank you for your time. I wish we had three hours but look...

Alan Jones - avatar Alan Jones

Travel

DEAL: Kids stay and eat for FREE these school holidays!

Take these school holidays to the next level with the ultimate family escape at PARKROYAL Darling Harbour. What’s more, kids under 12 years of age, can stay and eat for FREE! ...

Liana Gardy - avatar Liana Gardy

How to Book a Hotel for Your Vietnam Trip

Finding a travel destination may turn out to be challenging at times. You may have a long bucket list, which leaves you spoilt for choice on where to visit first. Going through travel blogs and site...

News Company - avatar News Company

New Allianz data reveals the ‘forgotten’ European countries attracting Australian travellers this winter

FROM SPAIN TO THE UKRAINE - THE SURPRISE EUROPEAN DESTINATIONS BOOMING WITH AUSSIE TOURISTS Australian travellers are seeking new destinations beyond the Mediterranean when it comes to European...

Media Release - avatar Media Release

ShowPo