“This year’s results on succession show a recurring theme too. It’s the fault-line in the family business model. There’s no point having detailed plans for business continuity, if the single most significant risk to this is not addressed. A managed succession process can be a rallying point for the family, allowing it to reinvent itself in response to changing circumstances, but without a plan it is the most obvious ‘failure factor’ for the family business.”
“The next generation play an important role in creating the family business’ future. The great majority of family businesses around the world don’t believe they are vulnerable to digital disruption and many state they have a strategy fit for a digital world. In our experience they underestimate the impact of digitisation. It shows that it is very fruitful to listen to the next generation and have them be the change agents for digital transformation.”
The report finds that a more uncertain economic environment means that for many family businesses, ensuring the company stays in the family is possibly not as important as it once was. Fewer than half of family businesses plan to pass both ownership and management of business fully to the next generation (39% will pass on management; 34% will pass on ownership). First generation business owners are now almost twice as likely to be planning to sell or float their business (29% vs 17% average across all businesses).