For a family business, transition is a once-in-a-lifetime decision. Perhaps no challenge has as much potential to exacerbate the special stresses, or, conversely, highlight the special advantages of operating a family business. And as if the business, emotional, legal, and technical issues weren’t thorny enough, consider this daunting fact: only about 30% of family businesses survive into a second generation.
As reluctant as many families may be to tackle the issue, the health and longevity of a family business depend on careful transition planning and on communicating the results of that planning to the right stakeholders at the right time. Doing so will increase the likelihood that this family business will endure well beyond the leadership transition, delivering lasting value to the family.