Facts & Figures

  • Approximately 30 percent of all family-owned businesses survive into the second generation, and 12 percent will be viable into the third generation. Only 3 percent of all family businesses operate at the fourth generation and beyond.
  • Of the 70% of businesses that fail to transition successfully; 60% fail due to problems with communication and trust. 25% fail due to a lack of preparation from the next generation. 15% fail from all other issues (e.g. poor tax or financial planning, legal advice, etc.) Source: Williams and Preisser, 2003 Preparing Heirs: Five Steps to a successful transition.

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