It’s not uncommon for parents who run successful family businesses to consider passing the company on to their children. Having built a successful business, you’re looking for the most effective way to pass it along.
While passing a business down to the next generation may seem like a noble gesture, it is rarely successful. Statistics show few businesses are successfully transferred to the next generation. Ensuring success requires experience and a well-developed and thought-through plan. US Small Business Administration stats:
- Only 30% of family-owned businesses survive to the second generation
- Only 13% are still viable into the third generation
- Only about 3% are still viable into the fourth generation
With our experience working with a wide range of business owners and their net worth over the years, we know what issues complicate the process of passing on a business to family members.
