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Use Of External Advisers In Family Business

Thursday 27 March, 2008

64.4% of family business owners report the use of outside advisors on a regular basis.

A number of early international reports (e.g., Stoy Hayward & the London Business School, 1990; Massachusetts Mutual, 1993) highlighted the tendency of most family firms to rely on the advice and counsel of other family members associated with the business, rather than consulting with professional advisers.

Since our 2003 Survey, lawyers, financial planners, and business advisers are being increasingly consulted on a range of business matters including business advice, finance, and estate planning. Accountants continue to be the preferred adviser for all but financing and insurance matters (Table 21.1).

Use of External Advisors

 

Significantly, 51.6% of family business owners indicate that they have NOT sought outside advice on their succession options and strategies, and do NOT propose to seek such advice in the foreseeable future.

Table 21.1 shows that when they do seek advice on succession and succession planning, family business owners are more likely to use a diversity of advisers, including accountants, solicitors, and business consultants.

Author Credits

This article is an extract from “The MGI Family and Private Business Survey 2006”. The RMIT University team that developed and conducted this Survey comprises Professor Kosmas X Smyrnios and Mr Lucio Dana. MGI Boyd Principals Ms Sue Prestney and Mrs Naree Brooks provided valuable input during the research process. For more information concerning this survey, please contact MGI Boyd, Melbourne – Sue Prestney; P: +61 3 9521 3000 or E: melbourne@mgiboyd.com.au or W: www.mgiboyd.com.au
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