Singapore company looks to buy SMEs lacking successors

It launches training programme to groom next-gen leaders

- Benjamin Lim

Owners of small and medium-sized enterprises (SMEs) without successors may be able to get help on two fronts — they can sell to a newly incorporated company, which will also groom and provide a next-generation leader who can help preserve their legacy.

Timah Partners, a permanent holding company that will focus on acquiring and operating businesses for the long term, said its CEO Succession Programme (CSP) will offer founders and leaders of SMEs, particularly those in the services sector here, a shot at renewal.

Even though the services sector contributes over 70 per cent of Singapore's gross domestic product, many companies in this space face a critical succession challenge, a gap that often hinders leadership renewal and sustained business growth.

This challenge is especially pressing for first-generation towkays approaching retirement, many of whom have no family members willing or able to take over the reins of their businesses, said Timah Partners founder and chief executive Dennis Chua.

In a 2021 survey by PricewaterhouseCoopers, just around a quarter of the 80 Singapore family business leaders polled said they have documented a succession plan.

Mr Chua said the CSP aims to close this gap with a structured succession training programme.

The services sector, which includes businesses from landscaping to pest control and waste management, is also not widely seen as an attractive career destination, said Mr Chua.

"The biggest issue these SMEs face right now is not capital, it's talent. That is the problem we want to solve with the CEO succession programme."

He added that the CSP will focus on grooming local leadership talent, and aims to attract applicants from more diverse backgrounds in the longer term.