Business Health says at the same time the report<\/a> identifies a clear opportunity.<\/p>\n “With relatively straightforward planning, structured agreements, and a proactive approach, businesses can significantly reduce risk, preserve value and ensure continuity…\u201d<\/p>\n In the report\u2019s executive summary Business Health says that while most principals recognise the importance of planning for unexpected events, “very few” have taken the necessary steps to protect their clients, staff and the value of their business.<\/p>\n It says planning exists – but it\u2019s rarely formalised, noting that although succession planning is widely acknowledged as important, execution is lacking:<\/p>\n Business Health says this creates real risk \u201c\u2026not just operationally but financially – particularly for the family of the owner and the clients who may be left exposed.\u201d<\/p>\n Its second point is that the business value is often unknown. \u201cMore than half (56%) of practices have never had their business formally valued.” Without this:<\/p>\n …self-licensed principals face greater operational risk, particularly around who can legally service clients…<\/p><\/blockquote>\n The report also points out how licensing structures carry different risks. \u201cOur research included a near-even split between self-licensed businesses and those using external third party licensees,\u201d it says, noting that self-licensed principals face greater operational risk, particularly around who can legally service clients.<\/p>\n \u201cExternal licensees can provide support, but only if terms and responsibilities are clearly understood and planned for.\u201d\u00a0 In both cases preparedness, not structure, is the deciding factor.<\/p>\n Business Health’s fourth point highlighted is that adviser and staffing gaps create immediate exposure.<\/p>\n The company says that without clear communication and contingency plans, even well-staffed businesses remain vulnerable.<\/p>\n The report also notes that the size and structure of the advice firms influence preparedness, stating that practices with higher revenue ($2M – $3M and $3M+ ) \u201c\u2026are more likely to have succession agreements in place, suggesting awareness increases with financial stakes.\u201d<\/p>\n It says businesses with a single owner are often the least prepared, despite carrying the greatest individual risk.<\/p>\n On estate planning, the report finds this is incomplete.\u00a0\u201cWhile 66% of owners report having some estate planning in place, alignment between estate plans and business succession arrangements is often unclear – potentially undermining both.\u201d<\/p>\n Business Health says there is a consistent theme across all findings. \u201c<\/em>Advisers are not practicing what they preach” <\/em>on risk management and continuity.<\/p>\n To mitigate the risks, businesses should prioritise:<\/p>\n The firm says its report is designed \u201c…to challenge assumptions, prompt reflection, and … encourage action. Because the real question is not if the unexpected will happen – but whether your business is ready when it does.\u201d<\/p>\n The report also details how Business Health can help adviser businesses across the areas highlighted in the report. Click here<\/a> for the report.<\/p>\n![\"\"](\"https:\/\/riskinfo.com.au\/news\/files\/2026\/06\/Business-Health-Report-cover-250x300.png\")
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