This article explores the potential risks and rewards and provides suggestions for family business and their advisors who decide to engage in the practice.
This issue is a précis of an August 2013 research paper by Dennis Jaffe entitled “Good Fortune: Building a Hundred Year Family Enterprise.” It includes a summary of some counterintuitive results as well as helpful suggestions for practitioners.
Guest Blogger: Andrew Keyt When preparing families for business succession planning,advisors often mistakenly narrow their focus to the single individual they deem most capable of running the business upon a CEO’s retirement. But to truly make sure families preserve their core values while maintaining strong corporate governance and sound strategic planning, advisors should make it their business togroom all next-generational family members for unique leadership positions. Since I began working with successors in 1997, I’ve seen first-hand how so many NextGen family members are ill-prepared to assume leadership roles. But this situation can be avoided