ASSESSMENT OF MANAGEMENT SUCCESSION PLANNING AND PRACTICE IN LAGOS REAL ESTATE FIRMS

Abstract

The study assessed management succession planning and practice in Nigeria Real Estate Firm. The various estate firms that were established in Nigeria in the 1970s were examined as well as the proportion of those still existing in the 1990s. Furthermore, the reasons for their existence and non-existence were also examined while the relationship between the survival of the firm and existence of a succession as well as factors mitigating against the management succession planning among real estate firms practice were examined the course of the research. The findings of this study revealed that so many firms were established in the 1970s which included Oludemi Jagun & Co; J.A Dosunmu and Company; Uloho & Co; Epega & Co. M.I Lawal & Co; A. G. Sangosanya & Co; S. O. Chinwuba & Co.; Phil Anozia &Co.; Odudu & Co and Oyeleke Afolabi & Co. The study found that all the listed financial members of the institution and board are still in existence. However, quite a few number of firms whose names have been expunged from the list of financial members showed that such firms in existence. The study revealed that the major factors influencing the implication of success planning include Transfer of Business to Owner’s Family members, employees e.t.c; Death of Principal Partner; efficiently distributing the assets of the predecessor among successor; passing control of the business and ensuring business leadership and Mentorship. The reasons for the non-existence of the firms also showed that the major issues include malpractice;, unsupported by regulatory bodies;, lack of article of Agreement/Association; Misconduct and power struggle/conflicts. It is therefore pertinent to state here that succession cannot occur unless there is successor. So, identifying a potential successor is a significant step in succession planning. This aspect could be a great challenge to small business owners due to usually concentrated ownership and limited human resource capacity. Thus, it is hoped that adequate planning arrangement are made before succession plans are implemented. Base on the above findings, the following recommendations are put forward; The relevant stakeholders to address the issues related to succession planning for better real estate including the real estate professional bodies Nigeria Institution of Estate Surveyors and Valuers (NIESV) and Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON) should help in the encouragement of partnership models in real estate business. The Nigeria Government should succinctly look into the development and operation of the private sector organization.