While succession is challenging for all businesses, it often becomes even more complicated when family relationships must also be considered. This overlap between business and family creates many obstacles to the management, growth and sustainability of these companies.
A good insight into some of the practical steps needed to plan for the successful transition of the family firm from one generation to the next.
While adopting sound governance practices can provide a valuable framework for family firms to address issues of sustainability and professionalism, they’re usually not compulsory, as they are for large companies listed on the stock market. Family SMEs therefore rarely adopt corporate governance codes and principles, and even if they do, family emotions can influence strategic decision making, and especially succession.