Research across the UK* suggests that a significant proportion of family-owned businesses do not have a formal succession plan in place. Some studies indicate that as many as two-thirds of family businesses lack a documented plan for who will own or lead the business in the future.
Employee Ownership Ireland has launched a short research survey to better understand how prepared Northern Ireland businesses are for succession and ownership transition. The organisation has engaged with local universities and is now working with business organisations to build a regional and sectoral view. All businesses are encouraged to respond.
For many owners, succession is a question that is easy to delay. The focus remains on running the business day-to-day. Without preparation, however, viable companies can be forced into rushed sales, closures, or ownership transfers that do not reflect the wishes of owners, employees, or the communities they support.
Across Northern Ireland, small and medium-sized businesses employ a large share of the private sector workforce and form the backbone of many local economies. When the future of those businesses is uncertain, the impact extends far beyond the owner.
The survey aims to build a clearer picture of how business owners across sectors are planning for the future of their companies and where support or information may be needed.
Karen Maguire, Chair of Employee Ownership Ireland, said: “Every business owner eventually faces the same question – what happens to the company when they step back.
Many businesses in Northern Ireland have taken years, sometimes decades, to build. They support local employment, supply chains and communities, yet succession planning is often left until very late.”
Karen continued, “Without a clear plan, businesses can find themselves forced into decisions that are rushed or that do not reflect the long-term future the owner had hoped for.
Understanding how prepared businesses are across Northern Ireland is an important step in making sure valuable companies are not lost simply because the question of succession was never properly addressed.”
The survey is open to all business owners and senior leaders across Northern Ireland and takes only a few minutes to complete.
The findings will help inform future discussions around succession planning and the range of options available to owners, including family succession, management buyouts, trade sales and employee ownership.
Employee Ownership Ireland will also host a roadshow event in the MAC in Belfast on 24th March bringing together advisers and business leaders to discuss practical approaches to succession planning.
Business owners are encouraged to take part in the survey and help build a clearer picture of how prepared Northern Ireland businesses are for the future. To access the survey or to sign up to attend the roadshow , simply search Employee Ownership Ireland online or on socials.