CHIP OFF THE OLD BLOCK

Brothers Mark and Noel Elliott, managing directors, P.Elliott & Co.

Family businesses have a long history in Ireland and our economy depends on them. Linda Pearson discovers that P.Elliott & Co. are part of this vibrant community.

Family business, P. Elliott & Company was founded in 1942 and now, over sixty years later this business has grown into one of Ireland’s leading construction and property development firms.

Family businesses are the predominant form of enterprise in Ireland and are a large part of our economy. However, commonly quoted figures suggest that less than 30% of family businesses are successfully passed on to the second generation.

P.Elliott & Co is not within this minority and is now in the third generation of successors with brothers Noel and Mark Elliott holding the reigns of a company founded by their grandfather Patrick Elliott.

Handing Over Responsibility

With over 600 staff and a group turnover of €450million, P.Elliott & Co is the largest construction company in Ulster and is ranked among the top construction companies in Ireland. Figures show that around 70% of businesses don't survive the next generation and experienced family businessman Noel Elliott explains why he thinks this is the case.

“There are two reasons why family businesses fail. Firstly, the next generation isn’t interested or capable of running the business as it goes forward. Secondly, and more prevalently, the existing shareholders are finding it very difficult to hand over the reigns and accept that other younger people coming along could run it as well as they did,” explains Elliott.

The Elliott brothers feel that their father, Noel Snr, was not one of those people afraid to hand over the running of the business, but he only did so when he believed his sons were ready. “Our father identified that myself and Mark were hungry, capable, and keen to run the business. We would always have aspired to take over and run the family business but it wasn’t a foregone conclusion that the company would fall into our hands until we were able to display to our father that we were capable. So in his mid 50s he handed over the business at an executive level to us and we bought his shares in the business from him.”

Succession Planning

Within any family business, succession planning is crucial to the continuity of the organisation through to the next generation. It contains the plan for the future of the family business and it is important to choose the leader that can best meet the future needs of the business. The brothers realise this and also say that in order for a family business to grow and prosper, the best person for the job should be chosen to take over, regardless of whether they are a family member or not.

“Succession planning is crucial and it’s very important to plan it anything up to ten years ahead of when shareholders, directors, or owners are likely to change. Our view is that in order to grow a family business you should assume that the family will continue to own the business, but you shouldn’t assume that the family will continue to run the business. Whoever is the best director at an executive level should run the business and it doesn’t necessarily have to be a family member,” says the managing director.

Separating Work From Play

A pivotal part of any family business is that the family can distinguish between work and home life. If they cannot, it can cause rifts and potentially hamper the company’s success. Mark and Noel however have a sound working and home relationship and know they are lucky that they can strike a balance between the two. Younger brother Darragh also works alongside them as contracts director, adding to the family atmosphere. “Myself and Mark work very well as a team. We have been working together for over ten years. Mark runs the property side of the business and I run the construction side. Because we have different roles in the business we don’t tend to clash and we compliment each other very well. We also find it very easy to strike a balance between work and family life, and I think we’re very lucky because some family businesses don’t find that so easy. It’s important to bear in mind that you’re running a business and not a family,” advises Elliott.

Contributing To The Economy

The successful duo recognises the huge contribution family businesses bring to a vibrant Irish economic environment. “Most family businesses from a husband and wife team up to a large family business like us would form up to 70% of the businesses in the country. Each one is just as important to the economy. If you take out family businesses and the entrepreneurial spirit that comes with them, you would fundamentally undermine our economy,” concluded Elliott.

Contact: P. Elliott
W: www.pelliott.com
E: info@pelliott.com