Many successful family business owners in Malaysia have spent decades nurturing and building up their companies. And now as they approach retirement, they naturally look forward to reaping the rewards of their labor over the years. While many are prepared to transition out of the business they have built and hand over the reins to the next generation, there are also those who have given little thought to this process.
According to Koh Ree Nie, a partner at KPMG in Malaysia’s enterprise practice, the decision on whether to sell the business or adopt a succession strategy will be driven by the owner's
personal and financial objectives.
“The decision can be different depending on the timing and circumstances. For instance, exiting the business rather than succession planning may be the option as there isn't a next of kin who is ready, willing or able to continue the business. In this case, you may need to consider employing non-family members as managers or selling the business to external parties,” she said.
Adding to this, Foong Mun Kong, head of Enterprise practice of KPMG in Malaysia, advised those planning to make their exit strategy to work with an experienced and trusted adviser who can help to prepare their businesses for sale. “Selling a family business is not a spur-of-the-moment decision, and requires significant planning and thought. Taking your time to make key choices and to adequately prepare your exit strategy is critical to a successful sale.”
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