Connect Financial Service Brokers chief executive Paul Tynan said in a statement the financial planning and accounting industry associations have struggled to communicate the importance and need to position practices for exit and succession.
He said many financial advisers are holding on to their businesses until their late 60s or 70s for a buyer and then being forced to sell as illness, medical issues or death take their toll.
“There is definitely a significant subset within [the Baby Boomer] demographic with resistance to change firmly ingrained in their DNA and have been consistent reluctant adapters to modernise,” Mr Tynan said.
“When the reluctance to change and modernise is combined with an emergency exit the result is a succession planning disaster.”
Mr Tynan cited the story of an accountant in his 70s that had been trying for many years to sell his business without success.
Last month the accountant died suddenly resulting in the family losing their husband and father and putting the value of the business at great risk, he said.
Mr Tynan said that breaking down the barriers and resistance to change is going to take an effort that goes beyond workshops and conferences to get the job done.
“How the government, industry professional associations and business owners cope with succession planning is open to many questions,” he said.
“Perhaps a program as dramatic as the road safety commercials is the only means of shocking the recalcitrant planners and accountants into action.”
Melbourne planner I don’t think the article in any way suggested people retire because they can’t do the job at that age. What i took from it is that those working into normal retirement age should have an exit plan firmly in place because as we know in this job, people rarely get to choose when ill health or death strikes. Even before we get older, a small busineaa should look at what exit plans are available to them if there is noone to continue the business in their absence.
There is nothing wrong with working into and beyond late 60’s or early 70’s. I don’t feel that it is a case of apathy and ignorance, as most of the financial advisers and accountants will be only to aware of succession, I feel it is a case of being able to continue on to a late age in a business that is successful and doesn’t require much physical effort.
The article, clearly written by a business broker, may even be seen as a bit of an advertisement to garner more business for himself?