Succession planning: How family businesses can protect their legacy and grow
Succession planning isn’t a “later” issue – it’s a now opportunity.
For family businesses across Australia, the question isn’t if a transition will happen, but how well prepared they’ll be to turn it into a platform for long-term growth whilst retaining control of what they’ve built.
At the Australian Business Growth Fund (ABGF), we’ve seen first-hand how proactive succession planning preserves legacy, strengthens leadership, and creates new opportunities for generational success.
As part of a new series on family business leadership, we’ll be exploring how families navigate one of the most important—and personal—decisions they’ll ever make.
From risk to opportunity: Succession planning is a launchpad for accelerated growth
The numbers tell the story: around 800 Australians turned 65 every year. For business owners among them, the retirement transition presents real risks: leadership gaps, reduced business value, and, in the worst cases, closure without anything to show for years of hard work.
For family-owned businesses, which employ55% of private sector workers, succession planning isn’t just about passing the baton—it’s about preserving the founder’s vision and the relationships built over decades, while still competing and growing.
Handled proactively, succession becomes a launchpad for future success, not just a risk to manage.
Even a 1% lift in the performance of family-run businesses could addnearly 50,000 full-time jobs and $8 billion of GDP to the Australian economy. More importantly for founders, thoughtful succession strengthens leadership, improves business value, and sets the stage for long-term growth—on their own terms.
Succession is a process, not a moment
Succession isn’t a one-time decision. It’s a gradual transition that allows leadership, capability and confidence to evolve naturally.
At portfolio company Consolidated Linen Service, Managing Director Adam Roberts didn’t step into the role overnight. The leadership handover unfolded organically over several years.
“My father never considered himself a traditional CEO,” Adam shared. “The staff just saw him as one of them. It all happened gradually—one day I was paying payroll once a week, and the next, I was handling more and more of the day-to-day management.”
This evolutionary approach gave Adam the experience and confidence to lead effectively, without the disruption a sudden handover might have caused. Taking a phased approach like this reduces pressure on both generations and ensures leadership decisions are grounded in experience, not urgency.
The right partner supports both legacy and growth
For INSKIN Cosmedics founder and CEO Maria Enna-Cocciolone, succession wasn’t top of mind—until her husband, the company’s CFO, raised the idea of an exit strategy.
“And I was like, what exit strategy? I’m here for life,” she said.
But looking ahead, with her children involved in the business, Maria realised succession wasn’t just about stepping away—it was about future-proofing the brand without burdening the next generation.
“There was something bigger than us that understood our business intimately,” Maria said. “That safety net became really important to me. We didn’t want our kids to resent us down the track. I just wanted to make sure the brand was protected if something happened to us.”
That shift—from ownership to stewardship—is one we see often. As Maria put it: “One part of me wanted to make it bigger, but the other part just wanted to make sure it would always be protected.”
This is where the right partner can make a real difference.
At ABGF, many of the businesses we back are family-run. Our minority-only investment model gives families the freedom to maintain control while gaining access to capital and the intimate support to professionalise and grow. We also help founders explore partial liquidity, de-risking their personal balance sheet while preparing the business for the next chapter.
As Adam summed it up: “ABGF respected our wish to maintain control, honouring the values my father instilled in our family business. But they also offered us more than just capital—they brought expertise, resources, and connections that have been invaluable as we continue to grow and innovate.”
Future-proofing your family business starts today
Succession planning doesn’t begin the day someone steps down.
It begins with an honest conversation about what’s next—for the business, the family, and the future. The earlier that conversation starts, the more options are on the table and the stronger the outcome.
If you’re a founder thinking about the next chapter or a family business planning for the future, ABGF can help.
We work closely with business owners to support gradual transitions, inject liquidity, unlock growth, and strengthen legacy.
Let’s talk about how we can help your business thrive now and for generations to come.
Can ABGF assist your business?
At the Australian Business Growth Fund™, we provide long-term growth capital to enable SMEs to scale without giving up control of their business. Start the conversation with us today.