So what is going wrong with family businesses and the succession process?
Surely, the owners of family businesses cannot be held solely responsible for these alarming statistics. Far too much attention continues to be paid to the technical component of succession (tax minimization, estate freezes, family trusts, buy-sell agreements, wealth management, etc.) with far too little attention being paid to the people or non-technical component (family communication, family expectations, family values, family competencies, family dynamics, etc.) of the succession process.
Some family businesses successfully manage their management and ownership succession plans while preserving family and business harmony. There is no reason others cannot achieve similar outcomes. There are well-established approaches to family business succession planning that can help enhance results.