A lack of succession planning is the number one reason family-owned businesses fail to survive. But for those who intend to pass on the business to the next generation, assumptions about how the transition will work without clear communication and an agreed structure can have a devastating effect on the business continuity and personal relationships.

In 2010, Gavin Howarth started working at his family business, Howarths, an HR and employment law firm. In 2013, Gavin became the Managing Director, following many open discussions and careful planning. His parents subsequently implemented the transition of ownership to Gavin, which saw him become the majority shareholder.

As a NextGen leader, Gavin has had to find his own management and leadership style to remain authentic, feel confident, maintain a good relationship with his father, and build on the values that created the business. In this episode, Gavin shares his experience so that other businesses can thrive.

Guest

Gavin Howarth

Howarths

The Howarth Foundation

Family businesses go beyond numbers. Most act according to family values and ethical principles, embrace responsible capitalism and positively impact their local communities. This means they are generally better positioned for long-term success when compared to non-family-owned enterprises.  

But recent challenges, such as the pandemic, and high inflation are leading family businesses to reconsider priorities and the future. Should we expect to see an acceleration of the transition from NowGen to NextGen?

To answer this question, we invite Neil Davy and Fiona Graham of the Institute for Family Business. They also share current trends regarding family business succession, what NowGen can do to align its interests with those of the Next Gen, and what changes NextGen will bring to the family business and the UK business community.

Guest

Neil Davy

Fiona Graham

Institute for Family Business Website

Royal National Lifeboat Institution

RISE Corporate Purpose Advisory

2NZ

Department for Business, Energy and Industrial Strategy

Align: A Leadership Blueprint for Aligning Enterprise Purpose, Strategy, and Organisation by Jonathan Trevor

In March 2022, the Bank of England raised interest rates by a quarter of a percent. This was quickly followed by an identical raise in May and June, bringing the base rate to 1.25%, the highest rate we’ve seen in over thirteen years. At the same time, the UK recorded inflation of nine percent, reaching a forty-year high. Considering all these macroeconomic challenges, we want to understand how they will impact family business funding in a post-pandemic economy.

David Baggott, a Director in the Mazars Deal Advisory team, joins the conversation today to explain the changes in the M&A market and how rising inflation influences the ability to raise funds, specifically regarding family and privately owned businesses.

David has over fifteen years of experience advising and supporting family businesses through different transitions. He leads the debt advisory service at Mazars, providing specialist advice to shareholders seeking investment or funding for growth, as well as funding for succession. David was also shortlisted for Young Accountant of the Year in the Insider North West Young Professionals Awards 2020.

Guest

David Baggott

How understanding your funding options can re-shape your succession plan

How to plan for Successful Succession

Navigating the emotional side of succession planning