It takes a few years, so get started.
By Anthony Glomski
Research from the Family Firm Institute shows that only three in 10 (30%) closely held family businesses survive into the second generation. Just one in eight (12%) are still viable into the third generation, and a mere 3 percent operate into the fourth generation or beyond. Those statistics are even more disturbing because the same research shows that the vast majority of business families are overly optimistic – they believe they will be in control of their companies five years hence.
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Given this gloomy success record for family business transitions, it is no wonder that 60 to 70 percent of family wealth is lost by the second generation and that 90 percent is lost by the third generation. It does not have to be this way.
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