- Watch: Family First - Growth
There are some key considerations when formulating a plan for growth, specifically for family run businesses:
- Are all family members ‘on board’ with the growth strategy, if not how can we ensure their support?
- Do we have enough or too much external influence in our growth strategy to ensure that we are maximising all opportunities available?
- How should we include non-family members in our plans?
- Does our current succession plan and constitution also need to be reassessed in light of our growth strategy?
Profit is certainly not the worst reason for growth, but in most cases, it is not necessarily the best or most fundamental one. The larger the business, however, the higher the likelihood of experiencing increased complexity and costs, with an inevitable reduction of control. This in turn will have a more distinct effect on a family-run business.
Most businesses achieve growth organically. This can require considerable time and effort to establish a presence in your chosen market if you are starting from a cold start.
Those lucky enough to have a strong brand have a head start, but still have to work hard to get the business going. The other way to achieve growth is though acquisition, buying an existing business to compliment your own.
Whichever route you choose for growth, the key to delivering sustainable growth is understanding the market place, having the right team of people to deliver the business plan, and having the right products or services which the market demands. It is then vital to have the appropriate systems, processes and controls in place to support this growth.
In a growing business, those charged with the overall running of the business need to assess the business on a regular basis to ensure it remains fit for purpose. From this assessment, and often with the help of an outside view, a plan can be pulled together that will allow for future growth.
Good management is a combination of well trained people, luck, foresight and good timing.
Knowing when to make changes to a business that is growing is about having good access to benchmarking data about your competition and access to other market data.
How we can help
KPMG has cross disciplinary teams that can help you develop your growth strategy, then ensure that you are able to implement it effectively.
Some of the many examples of how we can help you with growth are:
- Corporate Finance advice – including strategic advisory and deal management services covering acquisitions and disposals, mergers and takeovers, private equity strategies, valuations and fairness opinions, and structured and leveraged financing.
- Transaction Services assistance – due diligence for a full range of transactions including acquisitions, disposals, refinancing and IPO’s.
- Tax advice – how to structure transactions in the most tax efficient manner possible and the tax implications of various options, covering corporate, employment, VAT, stamp and personal taxes.
- Restructuring services – we have a first class restructuring team who regularly work with businesses to identify areas to improve cashflow and working capital which can release funds to aid your growth strategy.
- Advice around international expansion and government support available. We can help you navigate through the many government incentives and support structures that can enable you to begin exporting, entering into joint ventures, or even setting up an overseas branch.
- Valuations – our valuations practice work on both the buy and sell side of deals and will ensure that you get maximum value from your transaction.
While all of these services are invaluable in helping you achieve and manage growth, our experience with family businesses has taught us that unless the Family Component is managed effectively, growth can be constrained or even reversed, In particular issues in relation to succession, ownership and family and business governance play a major part in the success or otherwise of your growth strategy.
Family First’s holistic approach to overlaying strategy, governance and generational issue management onto all of our services helps you to effectively manage the Family Component in order to unlock your future growth potential.