Families are relying on their business to fund retirement with 83% saying they regard their company as their pension, new research with family-run businesses from the UK’s leading discretionary wealth manager, Investec Wealth & Investment shows. The independent study by the company, which is part of Rathbones Group PLC, with family businesses which have a combined annual turnover of £781 million found more than one in four (26%) expect to fund 50% or more of their retirement spending from their business investment. Shockingly nearly one in 10 (9%) say they do not have or don’t know whether they have a private pension outside of the investment in their business. Around one in 25 (4%) say they didn’t start saving into a pension until they were aged 40 or over. The research found the current generation in charge of family-run businesses do not intend to work until they drop. Almost all (97%) are expected to stop working and being involved in the running of the business by the age of 65. Around 30% questioned, said they expect the current generation to quit before 60. It’s not all bad news on the personal finances of family-run businesses – around 79% questioned, estimate the finances of their senior family members are good or very comprehensive in terms of investment in pensions and ISAs. Around 85% questioned, estimate that less than 50% of their wealth is tied up in the family business, with 21% saying the figure is lower than 25%. Around a third (31%) estimate they have more than £500,000 invested in their private pensions. Analysis shows around 4.8 million UK businesses are family-run – around 86% of all private sector businesses – and they employ up to 13.9 million people while contributing £575 billion to the UK economy. Nadine Collins, Financial Planning Director, at Investec Wealth & Investment (UK) said: “Many families clearly have substantial wealth tied up in their family businesses and it is perfectly understandable that so many rely on that wealth to fund retirement. Many will have neglected pension contributions over the years to understandably ensure the success of their business, resulting in a smaller traditional pension pot or none at all." “There are however huge tax disadvantages to ignoring private pensions and there will be issues about extracting wealth tied up in family businesses to fund retirement when people are no longer working in the business. To have the ability to take advantage of the allowances bestowed to pensions, planning needs to take place at least four to five years in advance of a business exit and businesses need to consider that tax rules may change." “Sourcing professional advice on the best approach to funding retirement and releasing wealth from family-run businesses is important for any family business, given the potential for personal and business finances to become entangled.” For more information visit www.investec.com

A Shropshire-based husband and wife team of entrepreneurs have been offered a £50,000 investment for their pet smoothie drink business on the popular Business show, Dragons' Den. Husband and wife, Ian and Louise Toal from Much Wenlock in Shropshire secured a £50,000 investment for a 35% share of their company from fashion retail entrepreneur and investor, Touker Suleyman, for their award-winning range of smoothie drinks for dogs. Furr Boost was the inspiration of Louise who, for over 20 years was a technical manager to the food industry. Louise’s Beagle, Phoebe at the age of 18 months became unwell with bladder problems which after investigations with her vet, were linked to the dog’s food. Using her technical food background, Louise then started experimenting with protein shakes to help flush out Phoebe’s system and to provide her with the hydration that she needed when she was refusing to drink enough water particularly in the summer months. This led to the creation of the Furr Boost range of smoothie drinks. During the episode, Louise explained that the drinks were unique on the market and that each of the recipes contains a real meat, fruit and vegetable, along with added oils and vitamins to support the dog’s wellbeing in areas such as digestion, skin and coat, anxiety, metabolism and immunity. The drinks can be served straight from the carton, frozen as an icy treat and Louise demonstrated to the Dragons the most popular way to serve the drink by creating an Ultimutt Furr Boost Puppuccino! The couple were seeking investment to expand their business into further major retail outlets including supermarkets, to export to more countries and to launch a range for cats. Commenting on their time in the Dragon’s Den Louise said, “It was pretty nerve-wracking having to present our business to the Dragons and they certainly put us through our paces, but we were delighted with the outcome.”

Independent family brewer and pub company Shepherd Neame was named Best Partnership Pub Company (up to 500 sites) at the Publican Awards on Wednesday, March 27. The Faversham-based business was also shortlisted in the Best New Site category for its recent refurbishment of the Duke of Cumberland, Whitstable. More than 1,500 guests attended the award ceremony, held annually to celebrate excellence across the pub and bar industry, which took place at Evolution London in Battersea Park and was hosted by comedian Tom Allen. Ed Bedington, editor of The Morning Advertiser, which organises the awards, said: “These awards are the Oscars for the hospitality trade and are the ones to win for all operators in the sector. The judging process is rigorous and fair and we put all our finalists through their paces before picking out our final winners." “All of the companies shortlisted in the awards are outstanding businesses, so to come out ahead is a fantastic achievement and one to be proud of.” Shepherd Neame currently has 219 tenanted and leased pubs and hotels throughout London and the South East, as part of its 300-strong estate. Its in-house tenanted team offers a diverse range of bespoke support and initiatives to pub partners, including guidance in areas including cellar training, wine, food, marketing and compliance. Licensee Clive Price, Managing Director of Barons Pub Company, which runs two of Shepherd Neame’s Surrey sites – The Cricketers in Woking and the Crown and Cushion in Camberley - was also named Best Pub Employer (up to 500 employees) at last night’s awards, for a third year in a row. Shepherd Neame Chief Executive Jonathan Neame said: “We previously won the Publican Award for Best Tenanted and Leased Pub Company back in 2020, so to be honoured again within four years is just fantastic." “When it comes to running a pub with Shepherd Neame, we don’t believe one size fits all. Just as our pubs have their own individual character, we know that every one of our partners has their own unique vision for their business. Our role is to offer all the support we can to help them achieve their individual goals and business ambitions." “We have a brilliant tenanted team, led by Director of Tenanted Pub Operations Greg Wallis, who work incredibly hard to support our licensees, and it is great to see their efforts recognised at a national level with this award.”

Willmott Dixon’s team of leisure experts are helping Stockport Council to develop a state-of-the-art Community Hub in Marple, supported by a £20 million grant from the Levelling Up Fund. Stockport Council has submitted a planning application for a new Community Hub in Marple, procured through Procure Partnerships Framework. The project will deliver a two-storey community hub located in Marple Memorial Park with a five-lane swimming pool, a ground floor library with a small cafe, a 60-station fitness suite, shared community spaces, and the relocated Marple clinic. The formal planning submission follows an extensive consultation process to finalise the designs, which will see the Marple’s existing police station, library and a health clinic demolished to make way for the new Community Hub with all of those uses retained on the site. The Library and Clinic will be relocated into the new complex with the Police relocated into Hollins House. The hub project will also replace the village’s previous swimming pool which closed in 2018. Pending planning permission, the project will be completed by the end of 2025 and comes hot on the heels of the official opening of Stockport’s transformational town-centre Viaduct Park and Interchange, delivered by Willmott Dixon for Transport for Greater Manchester. Earlier this month Stockport was also officially named the Best Place to Live in the North West of England by the Sunday Times. What people are saying Councillor Colin MacAlister, Stockport Council cabinet member for economy, regeneration and housing: “We have listened to what the people of Marple have said and this fantastic new facility reflects what local people have wanted in their area for a long time. I am delighted that we continue to move this forward. If planning is granted, this hub is going to make a huge, positive impact on the prosperity, health and wellbeing of the residents of Marple and the borough." “I was very impressed with how Willmott Dixon operated its Building Lives Academy during the construction of the town’s new Interchange and Viaduct Park, so I am looking forward to more of the borough’s youngsters having the opportunity to be involved in the construction of the Hub if the plans are approved.” Anthony Dillon, managing director for Willmott Dixon in the North: “We’re proud to be working in partnership with Stockport Council once again, and to be playing our part in creating a vibrant and innovative community hub for the people of Marple. In delivering Stockport Interchange and Viaduct Park, we worked alongside incredible local organisations such as Pure College, the Webb Lane Community Allotments, The Wellspring and The Samaritans and we look forward to continuing to support more amazing local causes." “At Marple Community and Leisure Hub we are committed to delivering a social return on investment of £3.78m including 132 weeks of apprenticeship training and 40 weeks of work placements. We look forward to also running two bespoke ‘Building Lives Academy’ skills programmes for students with special educational needs and for care leavers.” Natalie Palframan, Key Account Manager at Procure Partnerships Framework added: “We are delighted to be working in partnership with Stockport Council and our contractor partners to deliver a community-focussed project that leaves a legacy." "Should planning permission be granted, this new facility, coupled with the project’s focus on social value, is set to make a lasting impact on the residents of Marple as well as the wider borough.” Willmott Dixon has nearly 90 years’ experience in the wet leisure sector. In the last 10 years, the business has built over 160 leisure facilities for private, public and educational sector customers. A decision on the development is expected in June 2024.

Entrepreneur Dominic Ponniah, CEO and Co-Founder of award-winning commercial cleaning firm Cleanology, has been elected Co-Chair of the Living Wage Foundation’s Recognised Service Provider Leadership Group. Dominic commented, “As a long-term supporter of the Real Living Wage, I am absolutely thrilled to have been elected as Co-Chair of the Recognised Service Provider Leadership Group. This dedicated group of business leaders are champions of fair pay and understand well the commercial benefits for organisations who pay the Real Living Wage." "We want to support other businesses in any way we can on their journey to adopting the Real Living Wage so they too can realise the mutual benefits. I very much look forward to working with my Co-Chair Phil Smith and the rest of the group to continue to expand the Recognised Service Provider network.” Fin Watkinson, Partnerships & Campaigns Manager at the Living Wage Foundation, said, “We are delighted that Dominic has agreed to take on the role of co-chair of the Recognised Service Provider Leadership Group. The Leadership Group has provided us with brilliant expertise and insight for many years, and we are extremely grateful for the continued support of all the members." "Dominic and Cleanology have been a fantastic addition to the group over the last two years, and it is a show of Dominic’s commitment to the group and to advocating for the real Living Wage that he has agreed to take this on, succeeding Mike Bullock of Corps Security who has co-chaired excellently since 2022. We look forward to working with Dominic, Phil, and the Leadership Group to continue to champion the real Living Wage in the service provision sector.” In 2018, Cleanology commissioned independent research into people’s attitudes towards fair pay and the Real Living Wage, and in 2021, the company won a Living Wage Champion Award in recognition of their work supporting the Real Living Wage. Throughout 2022 and 2023, 100% of new business won by Cleanology was signed up paying the Real Living Wage or higher. The Recognised Service Provider accreditation was set up by the Living Wage Foundation to commend contractors who support the aims of the movement. For many sectors, implementing the Real Living Wage relies on responsible procurement, and the movement has been successful thanks to the constructive involvement of both Living Wage Employers from a client side and advocates in the contracted service provider industries. Recognised Service Providers have seen the benefits the Real Living Wage can bring and aim to champion the Real Living Wage in their contracts with customers. They have committed to always offering a Real Living Wage bid in place of or alongside every market rate submittal to all prospective and current clients, meaning the client always has the choice to implement the Real Living Wage at the point of tender. The Recognised Service Provider Leadership Group exists to assist and guide the Living Wage Foundation with policy decisions and lends its expertise to the Foundation to better champion the Real Living Wage within the provider industries. In May 2023, Cleanology announced it had created 600 new jobs during a period of record-breaking growth which included an acquisition in Wigan, Greater Manchester. This added a further 400 staff to the books, bringing the total workforce to over 1,400. Last year family owned and run Cleanology – which is headquartered in Vauxhall, South-West London – forged ahead with new hubs across the Midlands, Scotland and the South-West after 20 years servicing the capital. It has also opened offices in Manchester and Leeds.

Allied Vehicles Charitable Trust is proud to announce its latest contributions to the community, focusing on supporting educational and social growth in two Glasgow primary schools, and a youth sports coaching programme. With grants totaling £3,000, the Trust is funding initiatives at St Mary's Primary School in Maryhill, St Joseph’s Primary School near Glasgow City Centre and Winning Scotland, a charity that builds confidence and resilience in Scotland's children and young people. St Joseph’s Primary School, located close to Glasgow City Centre, will receive a grant of £1,000. towards the creation of a school library, a project designed to develop a love of reading among young people. Recognizing the school's diverse linguistic background, with 32 languages spoken among its students, the grant will help purchase books in various languages and essential library furniture. Ciara Lynch, from St Joseph’s Primary expressed the school’s gratitude for the donation. “Reading is crucial for learning and development and yet many children are missing out on the joy of reading and the benefits it brings; we don’t want our young people to miss this opportunity.” "We have 32 different languages spoken in our school so we want to buy books in a range of languages to suit this diverse community; this will have a great impact on our school and young people.” A further £500 grant will go to St Mary’s Primary School in Maryhill. This funding aims to alleviate the financial burden on families by supporting the costs associated with the Primary 7 prom, leavers' day out, and the traditional leavers' hoodies. Located in a deprived area of Maryhill, the grant ensures that every child can participate in these significant milestones without financial stress on their families. Kerry Finn, of the St. Mary’s Primary School Parent Council said the donation would make the P7’s last weeks of primary school memorable ones. She said, “I would like to thank the whole team at Allied Vehicles for helping the P7s at St Mary's Primary with costs for leaver events. This will help our families and the children will have an amazing sendoff thanks to Allied Vehicles.” Winning Scotland is a charity that builds confidence and resilience in Scotland's children and young people. The Trust has approved a grant of £1,500 to enhance delivery of a physical activity focused project called ‘On Our Marks’. On Our Marks improves the health, confidence, and life skills of 300 children in Primary 1 and 2 in 10 north Glasgow primary schools - Barlornock, Barmulloch, Chirnsyde, Elmvale, Miltonbank, Saracen, St Catherine’s, St Martin’s, St Monica’s and St Teresa's. The funds from the Allied Vehicles Charitable Trust will help to mentor and train young sports coaches recruited from sports students at Glasgow Kelvin College. As well as providing a sustainable source of physical activity provision in the local schools, this approach increases the practical knowledge, delivery experience and employability skills of the students, helping them to build networks in their local area and boost future employment prospects. Richard Orr, Director of Partnerships at Winning Scotland thanked the Trust for its support, saying, “We’re thrilled that this support from the Allied Vehicles Charitable Trust will enable us to continue building our training and mentoring relationship with Glasgow Kelvin College." "Supporting sports students to deliver the On Our Marks physical activity project in local primary schools has multiple benefits – helping children stay fit and healthy, developing the employability skills of students and creating opportunities in the local community.” Gerry Facenna, owner and founder of Allied Vehicles, said of the donations, "We're delighted to support these vital educational and social initiatives in Glasgow's schools and communities. The Allied Vehicles Charitable Trust is committed to making a positive impact, and it makes me very proud to see our contributions help foster a love of reading, support meaningful school milestones, and promote health and resilience among young people."

Williams Racing is thrilled to announce the arrival of its first-ever Fan Zone in Japan close to the iconic Shibuya Crossing in Tokyo. As excitement builds for the upcoming Japanese Grand Prix, fans will have the unique opportunity starting from Monday 1 to Sunday 7 April, to immerse themselves in the world of Formula 1 at the Williams Racing Fan Zone. The free-to-enter event offers unmatched access to get closer to the action and be a part of the Williams Racing team. During the week, fans will have the opportunity to: Meet F1 drivers Alex Albon and Logan Sargeant and Team Principal James Vowles. The full line-up of appearance times during the week and how you can register to meet them will be available at williamsf1.com closer to the event. See the Williams Racing FW46 show car up close. Get behind the wheel of a state-of-the-art esports simulator to test your driving skills around the Suzuka Circuit. Learn more about the team’s partners with Komatsu’s digger simulator and MyProtein’s batak challenge. Buy team merchandise, including limited edition collections. Fans who download and register on the Williams Racing app will have access to the latest event information and the chance to win exclusive prizes. Location: Zero Base, 2-5-8 Dogenzaka, Shibuya-ku, Tokyo Dates: Monday 1 April to Sunday 7 April Opening Hours: Monday-Friday: 12:00pm to 10:00pm Saturday: 10:00am to 10:00pm Sunday: 10:00am to 8:00pm Tokyo marks the second stop of the team’s 2024 Fan Zone World tour which includes a total of nine locations across the F1 season. Since 2022, Williams Racing Fan Zones have offered unparalleled access to supporters, attracting thousands of fans across the globe. Logan Sargeant, Williams Racing Driver: “It’s great that we’re able to bring our Fan Zone to Tokyo this year ahead of the Japanese Grand Prix. Tokyo is one of my favourite cities, and I loved experiencing it for the first-time last year." "I know the fans are super passionate about the sport, so to be able to give them the chance to be a part of the team, even if they can’t make it to the race in Suzuka is special. I can’t wait to see their support at the Fan Zone in Shibuya.”

New research from BusinessComparison has surveyed UK SME leaders on their usage of local banks, and has found that a huge majority agree that there are fewer banks near their business than there were 10 years ago. The survey asked owners and senior decision-makers at SMEs about how often they use their local bank and what worries them the most about bank closures. The results were also broken down by business leaders’ age and where they are based in the UK. Key Findings: 74% agree that there are fewer bank branches near their business than there were 10 years ago. 21% of business leaders say it takes them or a staff member 31 to 45 minutes to visit the local bank - 51% say it takes them 11 to 30 minutes. Philip Brennan, Founder and MD at BusinessComparison, comments: “We were interested in finding out how leaders at SMEs feel about their access to local banks. The fact that three-quarters of the people we surveyed said they’ve noticed fewer branches confirms a pattern that has been going on anecdotally for some time." “It was heartening to see how much of a sense of business community emerged from the survey results. For 88% of business leaders, the main concern when it came to bank closures was the impact on the local area, including other businesses.” Business Owners’ Biggest Worries About Bank Closures Only 12% of business leaders said they were not worried about bank closures in their area. 50% said they were concerned about businesses that take cash payments, and 34% were worried about the impact on customers. How Businesses are Using Their Bank One of the most popular reasons to visit the bank was to deposit any takings in cash - 46% of those surveyed said they ‘often’ or ‘sometimes’ go for this purpose. Collecting change from the bank was a slightly less commonly given reason - but while 47% of businesses never run out of change to give to customers, 13% do several times a week. 51% of business leaders said it takes them or a staff member 11 to 30 minutes to make a trip to the closest bank. 21% said that it takes between 31 and 45 minutes. Going Digital 44% of business leaders said they ‘Always’ use digital banking services to complete routine tasks, with 34% answering ‘Often’. Alternative digital payment methods were shown to be increasingly popular. Either due to customer request or difficulty using cash, 57% of those surveyed said they had taken a payment using the most popular of these options, PayPal. Differences by Region London was the region most likely to say they often take cash payments, at 40%, much higher than the national average at 24%. This region was also the most likely, overall, to have a member of staff visit the bank every day, at 62%. London’s business leaders were the most likely to say that there were more banks near their place of work than there had been 10 years ago. While there was still a majority saying there were fewer local banks, at 56%, 22% said there were more. Perhaps the reliance on in-person bank visits means bank branches in London are less likely to be closed. Another outlier was the South East, the most likely to only take card payments, at 35%. That is more than 10% of the national average of 21%. 74% of respondents here said their business never goes to the bank to collect change. Differences by Age In one interesting discovery from the survey, younger business leaders were more likely to make in-person visits to the bank. 45% of businesses run by 25 to 34-year-olds and 36% of those run by 35 to 44-year-olds send a staff member to the bank several times a week. Only 15% of businesses run by 55 to 64-year-olds go this often. Gen Z business owners aged 18-24 are the most likely to go to the bank several times a week at 51%. The survey found that while the majority of businesses still rely on in-person banking, there is a surprising level of variation between different age groups and across the country. Owners and decision makers at SMEs clearly value their local banks and are concerned that they are disappearing - both for their own sake and for the sake of others who use local bank branches, the other businesses in the local ecosystem as well as their customers.

Funerals can now be held in a stunning location among Dorset’s Purbeck Hills thanks to an exclusive partnership. Kingston Country Courtyard has partnered with Douch Family Funeral Directors to offer its 16th century barn for services. Magnificent views from the location look out over Corfe Castle to Poole Harbour beyond. With people’s expectations of funerals developing, this partnership provides a memorable location for final farewells. Kingston Country Courtyard is a hotel with fine dining and hosts a variety of events. Its facilities are now available for those organising funerals through any of Douch Family Funeral Directors’ branches. Malcolm Green, manager of the James Smith branch in Swanage, said: “People’s expectations and choices are changing. This has accelerated since Covid and our new partnership offers people a place where the service and wake can be held in the same, stunning place." "The burial or cremation will usually take place privately at a separate location either after or before the funeral and this is becoming a more common choice. Many people request that their funerals be held in a specific place and we aim to cater for them." “The facilities at Kingston Country Courtyard are superb including audio-visual equipment. While James Smith and the Albert Marsh branches are closest we expect clients from all our branches to be interested in holding a funeral at this location.” Tony Edwards, director of Kingston Country Courtyard, said: “We host a variety of events and welcome the partnership with the funeral group. Our 16th century barn can accommodate gatherings of 140 seated or 175 for a buffet. We have 26 rooms and our location is between Swanage and Wareham in the Purbeck Hills.” Douch Family Funeral Directors has branches in Wimborne, Parkstone, Swanage, Wareham, Blandford, Corfe Mullen and Ferndown.    Malcolm Green from James Smith Funeral Directors in Swanage, Emma Byron from Albert Marsh Funeral Directors in Wareham and Tony Edwards, director of Kingston Country Courtyard.

Frozen food distributor Central Foods has launched five new pizza bases for the food service sector. The KaterBake pizza bases are available in a variety of sizes and are suitable for vegans and vegetarians. They include thin and crispy and soft and fluffy options, plus a rectangular pizza which is ideal for larger scale catering. MD of Central Foods Gordon Lauder said: “Pizza is a big favourite in the food service sector, and we are very pleased to be extending our KaterBake range of products with these five new pizza bases." “The frozen pizza bases are low in fat and low in salt (below PHE 2024 Targets), with no added sugar, and made to an authentic pizza recipe with no artificial flavours, colours or preservatives. And with a size for all occasions, we hope they will be a hit with our food service customers.” The new range includes a 9” pizza base, two 12” pizza bases, a 14” pizza base and a rectangular 15” by 9” pizza base. All are soft and fluffy except the 9” and 12” thin and crispy bases. Central Foods is a leading UK food service distributor, founded more than 25 years ago. The company is a catering partner across the whole food service sector, supplying to hotels, restaurants, bars, universities, schools, pubs, care homes, garden centres, leisure outlets and more. It currently sells to over 180 independent wholesalers, as well as larger national and regional wholesalers.

British Showjumping has selected the All England Jumping Course at Hickstead as the new host venue for the British Young Horse Championships (9-12 August 2024). The show, which boasts a total prize fund of nearly £80,000, will take place on the all-weather arenas and will host qualifiers and finals for four-, five, six- and seven-year-old horses. There will be additional prizes, sponsored by British Showjumping, for the breeders of the top five British Bred horses in their respective Finals, as well as generous bonuses for horses jumping clear throughout the week. The Finals will also act as the UK qualifier for the prestigious World Breeding Championship for Young Horses in Lanaken in Belgium, which takes place each year in September. Hickstead Director Lizzie Bunn said: “We are really pleased to be the new hosts of this prestigious championships, which will be a showcase for the very best of young showjumping horses in this country. While there are a few other Open classes at this show, ranging from 1.10m up to a 1.40m Grand Prix, the focus is very much on our young horse classes and celebrating the up-and-coming equine talent in this country.” Riders in the Prestige Italia Six Year Old Championship will compete for the Big Star Trophy, awarded in honour of Nick Skelton’s 2016 Olympic gold medal winner. Any horse jumping a treble clear in one of the four Big Star qualifiers held between May and July will automatically be eligible for the £1,000 Big Star Bonus, which will be awarded in the Final. Iain Graham, Chief Executive of British Showjumping said: “The Prestige Italia Six Year Old Championship is one of the most important championships in this country for young equine stars. We are delighted that the final will form part of the British Young Horse Championships in its new home at Hickstead.” William Funnell, who has won countless Hickstead titles over the years, has agreed to sponsor the Billy Stud Auction Five Year Old Championship as well as putting forward two special £5,000 prizes for the highest-placed horse bought in a Billy Stud Auction in both the four- and five-year-old championships. “As a breeder, shows like the Hickstead Young Horse Championships are invaluable for producing young horses and highlighting their abilities. Having chaired the committee that established and spearheaded these Championships 15 years ago, I think the move to Hickstead is an excellent choice.” Al Shira’aa, already a major sponsor of Hickstead including the iconic Al Shira’aa Derby, has taken naming rights for the Four-Year-Old final. “We are happy to support the Four Year Old Championship at the first ever young horse championships at Hickstead. We at Al Shira'aa thoroughly enjoy the production of young horses and look forward to being a part of this event,” said Alicia MacDonald, Director of Al Shira’aa Farms. Hickstead-based Breen Equestrian has also taken on sponsorship of one of the young horse finals. Chloe Breen says: "Breeding future superstars has always been the goal of Breen Equestrian, and as such we are delighted to sponsor the British Seven Year Old Championship at its new home, here at Hickstead.” Spectator admission and parking is free of charge for the duration of the show, with competitor entries opening in July. For more information, visit here . Photo Credit: Elli Birch/Boots and Hooves Photography

What do you need to know before deciding whether to join the family business? We know that family businesses are great at taking a longer-term outlook and that extends to helping their potential successors to learn about all the various aspects of the business operations. But what we’ve also heard from those in the Next Generation considering whether to join the board is that understanding how to read and interpret the financial information may not receive quite the same level of attention. We’ve heard of newly appointed directors being asked to vote on crucial and potentially big number decisions but without having had much help understanding what the financial reports or projections actually mean. For example, understanding the Balance Sheet, Profit or Loss Statement, and Cashflow Statement, and what a ‘good’ set of financial statements looks like. And yet this is vital in order to make relevant and informed decisions, to understand the competition, as well as ensuring that your family business remains financially ‘healthy’. In the words of one of the FBU champion’s at last year’s conference, “Keep close to the numbers.” Deciding whether to take over the family firm involves careful consideration of various financial indicators to assess the company's current health and future potential. In additional to the annual financial reports, these are some of the key financial indicators to bear in mind: Profitability: how much money is the business making? Gross Profit Margin : Indicates the percentage of revenue that exceeds the cost of goods sold. A higher margin suggests better efficiency in production or service delivery. Net Profit Margin : Measures the percentage of revenue that remains as profit after all expenses, including taxes and interest. It reflects the company's overall profitability. Liquidity & cash flow: how much cash is the business generating? Is there a cash flow problem? Current Ratio : Compares current assets to current liabilities, indicating the company's ability to cover short-term obligations. The higher the ratio, the better! Working Capital : Current assets less current liabilities. This indicates the business’s available funds to finance day-to-day operations. Operating Cash Flow : Evaluates the cash generated from the company's core business operations. Positive operating cash flow indicates the company can both sustain and grow its day-to-day operations. Leverage Ratios: how much debt is there is in the business? How much financial flexibility is there? Debt-to-Equity Ratio : Measures the proportion of debt financing relative to equity. High debt levels can indicate financial risk, while low levels may suggest stability but could also mean missed growth opportunities. This is often a condition of any bank loan borrowing. Interest Coverage Ratio : Indicates the company's ability to cover interest expenses with operating income. A higher ratio indicates a better capacity to meet debt obligations as they fall due. Growth Indicators: how quickly is the business growing? Earnings Per Share (EPS) Growth : Reflects the growth in earnings available to shareholders over time. Positive EPS growth suggests improving profitability. Market Valuation: how much is the business worth? Price-to-Earnings (P/E) Ratio : Indicates the company's valuation relative to its earnings. A lower ratio may suggest undervaluation, while a higher ratio could indicate strong performance but also overvaluation. This is often used as a relative value comparison tool. What about EBITDA? Definition - EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) is a widely used financial metric that applies to both public and private companies, including family-owned businesses. EBITDA is a measure of the business’s ability to generate income, often used as a proxy for operating cash flow and is particularly relevant in the context of assessing a company's profitability and financial performance. EBITDA can be valuable when evaluating the operational efficiency and profitability of a business because it focuses solely on the core operating performance, excluding the effects of different financing decisions, accounting methods, and tax environments. Here's how EBITDA can be relevant when considering taking over a family business: Profitability Assessment : EBITDA provides a clear picture of a company's ability to generate profits from its core operations before considering the impact of interest, taxes, depreciation, and amortisation. This metric allows for a more straightforward comparison of profitability against direct competitors. Cash Flow Measurement : EBITDA represents cash flow generated by ongoing operations, and so is useful for assessing a company's ability to generate cash to cover operating expenses, capital expenditures, and debt obligations. Valuation : EBITDA is often used as a basis for valuation multiples in mergers and acquisitions. It can help potential buyers or investors determine the company's worth by applying a multiple to its EBITDA. Financial Health : EBITDA can indicate the financial health and stability of a company, as higher EBITDA margins suggest stronger operational efficiency and profitability, particularly if there is growth year-on-year. While EBITDA can be a useful metric, it also has its limitations. EBITDA does not reflect capital expenditures necessary to maintain or grow the business, nor does it permit consideration of changes in working capital requirements. Therefore, it's important that EBITDA is considered along with those other financial indicators held to be key for that particular family business. Spending time with the business’ accountants and other trusted advisers as well as conducting thorough due diligence, where necessary, are also essential steps in the decision-making process. Lastly, it is imperative to note that assessing financial indicators alongside identifying qualitative factors such as industry trends, competitive landscape, potential strengths/weaknesses, and the company's strategic objectives will provide a more comprehensive understanding how the family business is performing and will better inform all decisions. Furthermore, understanding and planning for the likely impact of the individual family business dynamic, those unique personal relationships, and so potential points of friction can help the Next Generation successfully navigate the future, and help align both the business’ strategy and acknowledges the personal ambitions of the incoming individual(s). About the Author - Charlotte Tong is a Partner and member of the family business team at Goodman Jones . If you are a potential successor and would like to get a better understanding of your management accounts, annual financial statements, audit obligations, financial budgets or cashflow projections please email familybusiness@goodmanjones.com