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Download our summary (566KB, PDF)
In fact, only 30 per cent of family businesses are successfully passed from the first to the second generation, 10 per cent pass from the second to the third generation and a tiny 3 per cent make it to the fourth generation and beyond.
So what can be done to ensure transition happens smoothly and successfully? Many of the obstacles can be avoided through timely and in-depth succession planning. It's important to begin early and seek the help of experienced, professional advisors. They can offer in-depth knowledge of the unique nuances of family-owned businesses and help guide through the entire process.
Succession planning can address numerous objectives, including maintaining business continuity, preserving wealth, avoiding disputes among siblings and other key stakeholders and managing tax obligations. The end goal is to achieve a successful succession of the business from one generation to the next—a process many families significantly underestimate.
Our downloadable report addresses a range of succession planning issues, highlighting common areas of misunderstanding and other matters that are often not considered. These include the need for a robust governance structure; the importance of understanding and including the younger generation; recognising the role of both non-family members and non-stakeholder family members; and understanding the process of selling a business.
Discover how together, these factors can give families confidence and the peace of mind that comes from having made strategic, informed decisions about the future of their business.