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…