What Is Business Succession?

What Is Business Succession?

Business Succession Plan is shown on the business photo using the text

Developing and implementing a well-designed succession plan is essential to the survival of a family business from one generation to the next. The fact is, more than seven out of ten family-owned businesses fail to survive the transition from founder to second generation, typically falling prey either to estate taxes or family discord – or both.

What Is It?

Closely held or family businesses have a low percentage of survivorship to future generations. Why? Inadequate or ineffective succession planning is at the root of the problem. Succession planning tackles the tough issues such as leadership, ownership, and the operational changes those family businesses with a strong founding leader face.

Who Normally Needs It?

Any family business that wants to survive past the current generation needs to have a succession plan in place.

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