Succession Planning for owner-managers

A recent PricewaterhouseCoopers survey of 534 businesses in Canada found that 45% said they didn’t have succession plans. Of these, 90% were family-owned businesses. This is a disturbing finding, as only 16% said they had a plan ready to replace their top managers, but more than half the companies surveyed indicated their managers planned to retire in the next five years.

Many different research projects around the world have shown that about 70% of family businesses do not make it to the second generation, while only one out of 10 are still being run by a third-generation family member. While a lack of succession planning is not new, the world could face a crisis as baby-boomer business owners begin to retire.

There are many different ways to handle succession planning, and some specific, proven strategies to do so within a family-owned business. Whichever method is selected, the message is clear: the Boomers are not going to around forever, and they need to start putting a plan in place for their succession. We believe that we have created a fantastic approach – you can read more about it at http://www.tomorrowwisdom.biz.

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