The odds of successful family business succession goes down with each generation. There are challenges with even making it to even the second generation of family business ownership, and by the third the odds become rather steep against successful succession.
The key is succession planning. Dave Specht, an adjunct instructor at the University of Nebraska, has a very practical and entertaining overview of the challenges of succession and some of the ways to overcome them in a new article published in Family Business Magazine. From the article:
Family business owners are re mark able people, yet the sobering truth is that they are mortal human beings. When it comes to preparing for the inevitable–business continuity planning–there are four reasonably predictable ways that most business owners’ attitudes can be characterized. Their thoughts and behaviors are represented here by four superheroes: Captain Immortal, Dr. Shhhh, Oblivious Man and Ms. Reality.