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In the heart of Canberra, family businesses are the hidden steel supporting our economy.
Across the nation, family businesses form the lion’s share of Australian enterprises, injecting an impressive half a trillion dollars into our economy and generating employment opportunities for a significant part of the workforce. This is also true for our nation’s capital, where family businesses are staying strong through multiple generations.
Canberra offers a unique blend of urban sophistication and family-friendly living. Its stable and supportive environment, coupled with well-designed infrastructure, creates the perfect backdrop for businesses seeking prosperity while maintaining a balanced family life.
Running a family enterprise in Canberra isn't easy
Managing a family business presents unique challenges where personal and professional boundaries often blur. Discover how successful businesses in Canberra overcome these hurdles and turn challenges into opportunities.
In this latest report, we've tapped into the collective wisdom of our seasoned advisers and successful family business clients in Canberra, to create a comprehensive resource with all the building blocks for family business success.
Canberra business Monaro Screens know all about securing a family business legacy
Monaro Screens started out as a thirty-year retirement strategy for Dave and Deidre Byatt. However, their son Ben's capable leadership caused them to change course. Now they've joined the growing trend of multigenerational family enterprises in Canberra.
The Byatt family worked with RSM to navigate the succession over four years. A pivotal element in this process was fostering a robust working relationship among crucial stakeholders—accountants, lawyers, bankers, and business advisors—who each played integral roles in various phases of the transition.
Notably, for Ben, this meant transcending familial ties to view Dave and Deirdre as business partners during this process.
As Monaro Screens enters its next phase under Ben's stewardship, the Monaro Screens success story continues to be an inspiration for the Canberra business community.
Want to learn more about running a family business in Canberra?
Read Monaro Screens' full success story >
Thiru Kandiah
“Family businesses resonate with the community. They’re involved in the local community, they’re invested and there’s incentive to do right by it. The people who own family businesses are also relatable, we want to cheer them on when they succeed, hit milestones and sometimes, get passed down to the next generation.”
Business valuations not only help families understand the value of their business but also play a key role in making sure it's protected and passes on successfully to the next family members.
Mergers and acquisitions
For family businesses eyeing mergers and acquisitions in Canberra, business valuation plays a pivotal role. RSM can meticulously evaluate the worth of the business, considering local market conditions and industry trends, providing a comprehensive understanding of its financial standing. This comprehensive insight aids negotiations and strategic partnerships, aligning with your family business growth objectives.
Selling the family business
When selling your family business in Canberra, local insight is key. To ensure a fair and competitive market value, look for a valuation from someone who understands Canberra's unique business landscape.
Obtaining financing
Securing financing in Canberra becomes more seamless with a precise business valuation. With RSM's expert guidance, family business owners in Canberra can confidently secure the financing needed for growth and sustainability.
Estate planning
Estate planning is essential when you're preparing for succession in a family business. With a clear valuation, family business owners can navigate the complexities of estate planning with confidence, ensuring a smooth transfer of assets to future generations.
Insurance
Insurance plays a pivotal role in safeguarding the future of a family business. With a clear business valuation, we can set up a plan, called a buy/sell agreement, supported by life insurance. This agreement facilitates a smoother ownership transition, providing liquidity for a buyout and preventing disruptions from inexperienced management.
Resolving legal disputes
In legal disputes, business valuation offers an unbiased assessment. In divorce cases, the family business's value is pivotal for asset division. Family law settlements often aim to sever financial ties, and a clear valuation is crucial, especially if the business is a primary asset. A Buy/Sell Agreement safeguards the business, outlining procedures for exits or incapacitation, preventing conflicts and protecting family ties.
Advisers can also provide valuable insights into tax implications and asset distribution. By taking these steps seriously, family businesses can maximize financial well-being, reduce risks, and prevent conflicts, ensuring a smooth transition for future generations.
Andrew Sykes
"Many of the most successful business owners can attest to the fact that a good adviser is worth their weight in gold. Their objectives are very simple: help you achieve your success by being a source of valuable insight and guidance, and a trusted confidant you can rely on at any stage of your business journey. "
Do you have a plan for exiting your family business?
Not all family businesses end well. It's wise to discuss your business structures with a trusted adviser to determine how assets will be passed on and what the tax implications might be for those who inherit. Working with a business advisor from our Canberra office could help you answer important questions surrounding your family legacy and wealth management strategies.
They can also mediate discussions between family members, explain exit strategies and make sure everyone – including those who are not directly involved in the business – are considered in the planning to avoid disputes.
Astute advice and good planning saves a family more than just money; it can preserve relationships and ensure a legacy for generations.
We can help you navigate the complexities of establishing, operating, growing and preserving your family business and legacy.
At RSM, we have more than 100 years of experience working closely with family businesses. We offer professional advice, business solutions and ideas tailored to your needs - built on a relationship of trust and mutual understanding.
