Introduction
What industry is R&D Solutions in?
Oil and Gas Service
According to Myers (2001) what is the most preferred source of finance?
Retained earnings / informal
what does succession planning aim to achieve
The ability for the business to be able to run successfully without the owner
What did Wikland and Delmar say that it is important for organisations to assess?
Strengths and weaknesses.
What sector was Furners' original career path in?
Agriculture
What two sources of finance did Furner select?
Debt and retained earnings
What is a measure that R&D Solutions have put in place as part of the succession plan
ISO accredation
What was the objective given for strategic planning?
It provides a road map to help your business get from where you are to where you want to be.
What idea sparked Furners' business venture (R&D solutions)
"We thought we could do a better job than the people we were working for."
What is a main problem associated with Equity financing
High adverse selection problem
What are the three points for developing a succession plan
1)Leadership development (by staff or family members)
2)The successors characteristics development, are hindered by changes in events
3)Finding a suitable successor
Under what circumstances would Furner expand the business ?
Only when he knows the company cam financially support the expansion.
What happened in Furners early life that messed with his head?
His Parents selling the family farm
Name one factor which contributed to Furner choosing debt financing over equity financing
He wanted to maintain full ownership
What attributes must the successor have to be considered as R&D's successor
Adequate knowledge of the business and industry
To strategically plan what does Furner target and construct
Targets goals and constructs a vision
How was Furner introduced to the oil and gas industry?
Socialising with locals at the pub
What factor enabled Furner to prolong debt financing
Additional income from his wife
Why Does Russell feel that an acquisition is the best option
It's a good way for the current partners to gain the most return on their investment
its plan, they change it to align with their long term goals