FBA survey results on dynamics of Generational Succession in Family
The FBA has recently released survey results of FBA’s next generation members examining the dynamics of generational succession in family businesses. As an overview nearly 2 in3 respondents to the survey said that working in the family business was where they “always wanted to be” and fewer than 1 in 10 appeared to be reluctant participants in the business.
30% reported that formal conditions are in place dictating the entry to the family business – most focused on gaining a formal territory qualification and also gaining outside work experience. More than 75% of participants had completed some vocational territory training (significantly higher than the population at large).
A significant 85% of respondents believed that family members should compete fairly with non-family members for both promotion and career opportunities.
Virtually all survey respondents (approximately 96%) believed governance was an important element in the future of the family business, with 60% saying they would be implementing changes to the existing governance structure.
Half of all participants to the survey said they had firm plans to hand over the business to the following generation in due course, of the remainder 25% needed a trade sale, a little under 2% a management buyout and the balance (just under 24%) nominated” “other” exit option.
Half of all respondents said they intended to remain the business more than 20 years, a further 23% indicated they would be staying around for another 15 to 20 years and almost 75% of respondents will spend the majority of their career and perhaps even end their career.
Interested in retaining your key employees?
Get your free ESOP whitepaper.