CHARTERED ACCOUNTANTS: KEY PLAYERS IN BUSINESS SUCCESSION PLANNING?

Abstract

Expanding on previous quantitative studies of business succession planning (BSP) by small and medium enterprises (SMEs) in New Zealand, this study provides qualitative data on the BSP process and the usefulness of Chartered Accountants’ (CAs’) input into that process. The owners of five provincial family SMEs who had all commenced BSP, were interviewed and provided comments on their perceptions of the process. BSP was primarily undertaken in a semi-formal manner and was found to be useful, particularly in planning for change to a “more balanced lifestyle”, providing reassurance to family members and maintainingbusiness continuity. Assistance from CAs was essential, especially with the technical and financial issues of succession. Successful advice was enhanced by a long-term, trustworthyand honest relationship between the CA and the client. SME owners preferred to address the emotional and personal relationship issues of succession without input from the CA. Fourrecommendations to Chartered Accountants on their involvement in BSP are suggested.