Succession and family businesses – a survey and the results

This information is courtesy of PWC, Chartered Accountants.

The recently released the results of their survey

Date published: 2010/2011

Source: PricewaterhouseCoopers

Description: More than 1,600 family-business owners and managers surveyed in 35 countries.

Key findings:

Many people are positive about the immediate outlook
Most companies haven’t changed their business models and don’t plan to in the near future.
More than a quarter of companies are expected to change hands within the next five years and most expect the business to stay in the family
Nearly half of all companies have no succession plans
Equitable division of assets is a problem for many proprietors
Many companies haven’t prepared for the sickness or death of a key manager or shareholder
Disagreements about future strategy are the most frequent cause of dissent
Most companies haven’t adopted any procedures for resolving conflicts between family members
Simpler tax rules and/or lower taxes top the list of changes family firms want. They also want a stronger corporate compliance environment, better links between industry and universities for product development, and greater access to capital markets.