It is getting to the point where not a day goes by without succession making the headlines somewhere around the world. This simply goes to prove the point - succession is a challenge the world over and one that families often struggle to come to grips with.
Often, the 'elephant in the room,' that nobody wants to talk about, it needs to be discussed. Strategically, there are obvious issues in terms of the family wealth being tied up in a business with no future leader identified and groomed, and future challenges could also jeopardise the actual value and sustainability of the business in the long term.
Research such as this goes a long way to highlight the issues at hand and it is great to see more advisers recognising the people and emotional aspect of succession on the family and the business, and therefore the family business journey, and being on hand to help too.
“There is no point in having detailed plans for business continuity if the single most significant risk to this is not addressed,” he said. Of the South African respondents, 70 percent had next generation family members compared with 69 percent globally. “This suggests that there is a strong pipeline of potential next-generation leadership, but with no formal succession plan in place, internal family conflict may undermine future growth, profitability and ultimately the existence of the business,” Re