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Family businesses fail without succession planning

It is often said that fewer than a third of family businesses survive the transition to the second generation, and fewer still to the third. The reasons are rarely about the business itself — they are about the planning.

Succession requires both legal structure and family communication. Without the first, the transfer is inefficient and possibly contested. Without the second, even a well-drafted plan can fall apart.

The families that do this well start early — often years before the transition. They talk openly about expectations, roles, and fairness. And they put the legal framework in place to support what they have agreed.