Transparency, the only mantra for successful Succession Planning & Exit Strategies for MSME Business
New Delhi: Intending to understand proper planning to build an effective exit and succession planning strategy to manage the sales process, save taxes, raise capital, manage succession planning and concept of Exit Strategy to achieve maximum value and a strong legacy for both owners, executives and employees, PHD Chamber of Commerce and Industry hosted a session on ‘Succession and Exit strategy Planning for SMEs’.
Mr. Ashutosh Jatia, Founder, Emerys Holding mentioned that succession planning and business exits are two equally pivotal elements of deciding when a business should change hands. Succession planning is an ongoing process to identify and replace key people, not just the owner-manager.
Exit strategy can also be open-ended but is more often fixed by a range of factors such as market conditions, and the age or health of those exiting, said Mr Jatia
Mr. Suraj Malik, Partner, BDO India in his detailed presentation gave an overview of the Succession Planning process. He deliberated that the Succession of wealth is important and succession for family-owned businesses requires a careful transmission to ensure smooth continuity of business.
He also said with today’s dynamic business environment, technological advancements, and global exposure to local businesses, a successful succession strategy warrants a deep forethought on the philosophies and principles underlying the succession ideology.
Such ideology should be then roped into a simple and easy-to-implement construct such that the business does not lose its mettle through generations, added Mr Malik.
Mr. D P Goel, Co-Chair, MSME Committee PHD Chamber of Commerce and Industries in his welcome address mentioned that Succession of a family business would involve the succession of its management and ownership, along with managing the expectations of the family members. This is a very crucial element and can’t be ignored in the entire process of succession.
He also said Small and Medium Enterprises (SMEs) also deserve the same degree of importance in succession planning and business continuity, but many entrepreneurs don’t take serious note of it. Progressive entrepreneurs who take up succession planning face several challenges in this endeavor, many of which are unique to SMEs in India.
Dr. Ranjeet Mehta, Principal Director, PHD Chamber, while moderating the session, mentioned that Succession planning is essential for every business. The quintessence of succession planning is crucial especially among micro small and medium scale business enterprises as they cannot afford to survive various major setbacks for stability and sustainability in developed and developing countries.
Emerys Holding was the Knowledge partner and, BDO India was the Advisory partner of the session. The session witnessed the presence of 65 MSME and members of PHD Chamber of Commerce and Industry.