Like all major organisational change, generational handover and succession planning usually brings risk and stressors and destabilises the business environment. Family businesses face further risks due to the need to consider the family relationships.
Due to these difficulties 70% of family businesses fail in the 2nd generation and 88% by the 3rd generation. With 41% of family business owners intending to pass the business to family members, careful planning can alleviate many of the difficulties involved in this process.
Family businesses present both advantages and disadvantages that stem from the presence of personal and business interactions between members.
We work with families to create wealth, improve relationships and reduce this risk within the family.
Reasons For Succession Planning
Successful family succession planning can:
- Improve the operation and performance of your business now and in to the future
- Result in better relationships and reduce conflict between family members
- Ensure prudent financial management in to the future
- Help you to protect your children and grandchildren
- Assist in reducing uncertainty in the business and the family
When is the right time to think about succession planning?
Foundation Family Business Advisory believes the earlier the process begins, the better, but continues to help people from initiation of the children into the business to transition and post handover and managing the shadow effects of the previous head.