Restructuring the Family Business
By Gary Brooks
Research about the survival rates of family businesses is extensive. Historic data indicate that fewer than 35% of the businesses pass to the second generation; fewer than 10% pass to the third generation. Very few survive into later generations as financial and talent requirements dilute the hold of the blood line. These statistics highlight the impact of issues unique to the relationships among family members, although they also include various wealth management strategies, e.g. sale, merge, etc.