Family-owned businesses across the world desire a successful
continuity of their business from one generation to the another.
Available statistics however suggests that 70% of family-owned
businesses globally do not survive into the second generation and
only 10% of family businesses survive till the third generation.
The process of transiting ownership and management of a family
business from one generation to the next could be onerous.
Nevertheless, it could be planned for in advance and executed in an
orderly fashion through the process of succession planning. From
experience, a well-structured plan will help families navigate the
challenges and ensures a smooth transition.
In this article, we examined the concept of succession planning
and why it is important. We also offered suggestions on some
practical considerations that should be taken into account when
designing an efficient succession plan.
