Some 8 per cent of the current generation expect successors to sell; 18 per cent of next-gen expect to do the same, the report said. 

Some 28 per cent expect that the next generation of family members will take charge within five years, and another 47 per cent expect the transfer to occur within the next six to nine years. Also, 46 per cent of next-gen survey participants expect to have leadership, C-suite, or executive-level roles in the business within five years. 

There are many studies and insights these days about business transfer, different perspectives on business, the challenges of taking over a family firm, and more. This report goes way beyond topics such as trust and estate planning, tax and control. A number of major private banks, such as at Bank of America, Wells Fargo, JP Morgan, Citigroup and UBS, devote resources to working with HNW and UHNW families on these topics. The desire to create structures through which families can hammer out agreements also partly explains the vigor of the North America family offices sector.

Mind the gap
The biggest divergence found by the survey concerned harnessing data to deliver insights and generate revenue, where 27 per cent of the current generation and only 17 per cent of the next generation strongly agreed that their family business excels in this area. 

There are other gaps in whether the company is working to improve cybersecurity and whether digital transformation is continuing to significantly accelerate and remain a top priority at the business , it said. 

When asked about the important competencies for a successor, 46 per cent of the current generation selected technology and digital transformation, which was the most common response. When asked to identify their core competencies, 46 per cent of the next-gen respondents also chose technology and digital transformation.

Risks
Survey respondents from the current generation perceive higher risks to business growth than the next generation in the ability to hire and retain employees , impact of climate change on business operations , and the capital structure of the organization .

When asked if “the family-owned business would continue to run smoothly and without interruption if an important family employee moved on, retired, or passed away because we have a formal succession plan,” 24 per cent of the current generation strongly agreed compared with only 13 per cent of the next generation.

Some 31 per cent of the current-generation survey respondents strongly agree that they are confident with their business alliances and partnerships, but just 22 per cent of next-gen respondents strongly agree with this sentiment.

In other findings, respondents indicated that while about half of current-gen employees had only ever worked at the family business, just 29 per cent of next-gen employees did.  

Views in common
For all the differences, there are points of unity. An overwhelming majority of respondents from both generations agree that next-gen family members working in the business are contributing to the furtherance of the business legacy and purpose.

Survey respondents included leaders and employees from the consumer goods; consumer services; energy, resources, and industrials; financial services; life sciences and healthcare; and technology, media, and telecommunications industries. All responses came from family-owned, private companies with revenues of $250 million to more than $1 billion.