How many family owned businesses reach the fourth generation

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How many family owned businesses reach the fourth generation?

Although we know that the examples load the devil and that the crisis is leading the generational change in family businesses. The recession encourages doubts about the future viability of the company, its value can reduced (which deteriorates the family estate) and the lack of credit can force open the shareholder investors sometimes desire to cash in and sell to a larger business.

The result? Only 1% of our family firms reach the fourth generation or beyond,”said Paul Mañueco, partner International Financial Analyst (AFI). To which the difficulties involved divestiture market values and a closed venture capital firms that materialize few operations are added.

The second or third generation continues only if proper succession planning was done. by the time fourth generation comes along, things have changed, markets moved on and most family businesses decide to throw in the towel.

 Tags: businesses, family, fourth, generation, owned, reach


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