Seven out of ten family-run businesses do not
have any procedures for resolving business conflicts between family
members and almost half have no formal succession plans.
PwC’s Family Business Survey 2010/11
found 47% of family companies, especially smaller businesses, have
no succession plan; while only 66% of firms with a succession plan
expect at least one family member to take over the top job.
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The findings suggest there are good
opportunities for private banks and wealth managers to advise
clients on the transfer of wealth from family businesses between
different generations.
Denmark, France, Italy, Sweden and Canada had
the highest levels of family-run businesses without a succession
plan.
Family feuds
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By GlobalDataThe survey revealed the number of family firms
experiencing tension increased significantly during the past three
years – from 43% in 2007 to 64% in 2010.
About a third (29%) of the firms introduced
procedures for dealing with disputes between family members and
tended to favour shareholder agreements. While, family councils
were the most popular means of resolving arguments about the
business, the report concluded.
PwC interviewed 1,600 family business owners
and managers in 35 countries for the survey.
