Developing Succession Strategies A High Priority for Family Businesses Around the World

Developing  Succession Strategies A High Priority for Family Businesses Around the World. As more surveys are completed about family businesses, it is becoming possible to compare family businesses in different countries.

Some recent examples:

  • A recent survey of 200 family business owners in more than 20 countries shows 65% saying the company’s management should remain in the family’s control in future generations. The survey, conducted by the International Institute for Management Development (IMD) in Lausanne, Switzerland, found that, “The tendency to prefer a ‘family solution’ for managing these companies also seems to increase with the age of the company and the number of family members active in the company.”  
  • The same survey by IMD suggested that family businesses unable to plan for family succession are likeliest to prefer using non-family members as managers while retaining ownership to going public (by 57% to 33%).  
  • A survey of 1,000 American family businesses conducted this year found more than 40% saying that they are placing a high priority on succession planning. The survey was conducted by MassMutual, and showed the percentage of family businesses doing succession planning had increased substantially over each of the last three years.  
  • A 1993 study of French family businesses showed that only one-third of owner-managers between ages 50 and 60 had decided on a succession strategy. More…

A Hard Look at Surviving Multiple Generations

A Hard Look at Surviving

Multiple Generations

an interview with Doug Renfro of Renfro Foods

In 1940, with the Depression still a vivid memory, George Renfro took a big risk for a man with a family. He quit his job selling restaurant supplies and condiments. With little more than sheer determination and the support of his family, George and his wife, Arthurine, co-founded George Renfro Food Company in the garage of their north Fort Worth home.

With annualized growth of 10% for more than half a century Mrs. Renfro’s salsa now ranks as one of the nation’s top five best selling salsas distributed by specialty food distributors.  They manufacture and distribute more than 100 products, including 25 Mrs. Renfro’s products to all 50 states, western and eastern Canada, the Caribbean and United Kingdom.  This third generation business is one of the nation’s five largest family-owned and managed salsa manufacturers and the nation’s largest producer of chow chow, a Southern relish made of garden vegetables, vinegar and spices. Today, the second generation, Bill and Jack, along with grandchildren Doug, Becky and James who are active in the day-to-day operations at Renfro Foods, and its Mrs. Renfro’s label, continue to grow at a fast pace. More…