The latest research by Campden Wealth has revealed significant issues around succession with 69% of family offices expecting a generational transition within the next 10 years, and in terms of family businesses 'implementing a succession plan' being a priority for the next two years.
Family firms need to take caution because succession can be tricky even in harmonious families and the process itself should not be underestimated in terms of time, cost, potential business disruption and also emotions.
Succession has been identified as an area that families struggle to discuss and address but with an estimated $3.9 trillion expecting to pass between generations in the next decade, let's hope that the vast sums involved help to focus the minds of those who have not yet started to plan for succession.
Failure to plan can lead in failure in fact so is it really worth the gamble?
Experience in managing successful successions in family businesses will increase in value as ultra-high net worth individuals worldwide transfer more than $3.9 trillion between generations over the next decade. The new Global Family Office Report by Campden Wealth, in partnership with UBS, revealed 43% of family offices expected a generational transition within the next 10 years, rising to 69% in the next 15 years.