The transition to the next generation doesn’t always go smoothly, even when there is a chance for keeping it in the family.
Kristina Johnson profiles this side of the farm business in Death of a Family Farm, citing stark realities like these:
So while financial advisors love to pull out the statistic that just 30% of family businesses transition into the second generation, the fact is that that number is no worse—and arguably better— than the longevity of most non-family businesses, which don’t survive past six years. Nor is the family business model fading in the 21st century. The global consulting firm McKinsey & Company reported this year that of the “7,000 large companies expected to form in emerging markets between 2010 and 2025, 80% will be family enterprises.”