The statistics are terrifying. A mere 28% of family businesses, across the globe, successfully move from founder to next generation, and only 4.8% make it to the third generation. How do you ensure that the momentum, built by the first generation, continues when the second one takes over? On The Money Show with Bruce Whitfield, Pavlo Phitidis outlines the fundamental principles of creating a succession plan for your family business:
A hardworking, smart professional presented me with a scenario on an offer she had received to conclude a management buy-out.
She has a good relationship with the founder and is a top technical expert in the business. he is reaching a retirement horizon and has confirmed that the future lies with her. He has said that the business will one day be hers and that incentives will be provided to ensure her slice of the pie should she bring new business in.