Nurturing the next generation

Succession planning has always been a sensitive spot for Australian family businesses including printers. They don’t do it that well; they’re not comfortable with it. An annual survey of nearly 700 family businesses undertaken by KPMG and peak body Family Business Australia found that 57% of incumbent respondents were concerned about the motives of their potential successor, and 63% admitted some concern about the ability of their successor.

It is a particularly sensitive issue for printers. There was a time when printers had their business and retirement all sorted out. They would get to the stage where they would sell the business or pass it on to their kids. How times have changed. With the economy stuck in low growth mode and problems besetting the print industry, it is harder than ever to sell for a good return.

The asset value of printing equipment is now well below what it once was and the industry is struggling with overcapacity. To put it simply: too many printers, not enough work. Furthermore, the next generation is not interested in taking over. Many can see the struggles their parents have had with the business and want to branch out on their own. Meanwhile, a manufacturing trade like printing doesn’t hold the same appeal as sexier, service-based industries.