11 July 2012
 
The demise of iconic Australian confectionary retailer Darrell Lea has revived debate about how well family businesses are run, and their relative financial performance, in comparison to non-family businesses.

Following a number of years of financial under-performance and amid concerns over the ability of the business to meet its financial obligations, directors of the 85 year-old Darrell Lea business moved on Tuesday this week to appoint voluntary administrators.

Transitioning the management and/or ownership of a business is never as easy as it seems, particularly in the Privately Held Business sector. Inevitably owning and growing a business over many years involves personal commitment and sacrifice. So when the time comes to start a new phase, letting go and grieving are just two of the many issues that need to be acknowledged and addressed. Further, the business normally forms a major asset, and how it is valued, the way consideration is received, and the taxation consequences need to be understood and addressed.