Family Business Stats

• 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.
  

• More than    of all business enterprises in the United States are family owned or Privately held.

•  of senior generation family business shareholders have not completed any estate planning other than writing a will, want the business to stay in the family, and are not confident of the next generation’s commitment to the business.

• In the next  years, 30% of family-owned firms will experience a change in leadership due to retirement or semi-retirement.