Meeting the Challenges of Succession in the Family Firm

Meeting the Challenges of Succession
in the Family Firm

by Thomas Davidow and Richard Narva

Succession from one generation to another does not happen by accident in a family-ownedbusiness.If you are interested in succession or the continuity of your business, you mustunderstand that planning for that continuity is the critical factor.We believe the failure toadequately address the topic of succession is the primary reason that only 30% of familybusinesses continue into the second generation and that only 10% more continue into the third.

Succession exists as an underlying issue in all family firms, playing a tremendously importantrole in the life of the family, as well as the life of the business.Yet owners and operators offamily enterprises rarely address succession, apparently because of its powerful psychologicalimplications, which can sometimes be overwhelming. More…

How Does a Family Business Make the Transition from Entrepreneurship to Professional Management?

How Does a Family Business Make the TransitionNortheastern University
from Entrepreneurship to Professional Management?

Family Business Quarterly

More often than not, less smoothly and gracefully than everyone would prefer. That was the consensus of small-group discussions at a recent Executive Breakfast meeting of Northeastern’s Center for Family Business.

William Finard, president of Finard & Co. and thespecial guest at the meeting, recalled his own experience trying to professionalize the real estate business his father had started. “There was no support at all,” he recalled. “I had exposure to the family business all my life, but no experience in it.” More…