Succession Planning is most critical challenge every family businesses face. Succession planning is a great opportunity to create a multi generational institutions or organizations which provides image to the founder members after their death also. Most of them believe that their business will be controlled and continued by their successors, but only 30% of the businesses survive into the second generation, 12% - 15% are continued in third generations and so on. The research provides the reality and destruct the optimistic belief of various persons. This failure is mainly due to lack of succession planning. Alignment of family interests is important to have proper succession planning.
Ownership Succession Planning
The ownership succession planning seems to be the most common areas in controversy or omission in family business succession planning is:
1.) Technical mistakes
2.) Planning in a vacuum
3.) Leaving the business to the surviving spouse and
4.) The challenge of treating children equitably.