If there is one thing that defines a family business, it is its commitment to permanence: transcending time and leaving a legacy for future generations. That is why succession is one of the key aspects of ensuring the continuity and success of these businesses.
However, more than half of business owners lack a succession plan; in fact, most companies do not survive beyond the third generation.
Having a well-structured plan for generational transition is essential. This plan should address delicate situations such as an incapacitating illness, the passing of the business owner, or the involvement of descendants, clearly establishing who will take over the business and how.
To ensure the effectiveness and suitability of these plans, it is advisable to seek guidance from independent experts. Their objective perspective, free from emotional ties, allows for more accurate and sustainable decision-making over time.
Emotional attachment, values, and personal goals influence the business owner’s decision. Those looking to pass on leadership often prefer to maintain the status quo, whereas successors usually bring innovative ideas aligned with current trends such as digitalisation or sustainability. This dynamic can create uncertainty for both parties due to the significant responsibility that comes with leadership in managing a family business.
For business owners without heirs, selling the company and enjoying the benefits obtained is a common option, so the possibility of a business sale should always be considered. For those with heirs, selling may also be an alternative in cases of family conflicts, to avoid disputes, or when economic stability is prioritised, especially if the descendants are unwilling or unprepared to take over the business. In this latter case, bringing in an experienced third party to manage the company while retaining family ownership can be a viable solution.
Ultimately, the transition of a family business is a complex and emotionally charged process. A well-structured succession plan streamlines the process, minimises conflicts, and ensures both business and family continuity.