In the fall of 2019, the Successful Transgenerational Entrepreneurship Practices (STEP) Project Global Consortium released the 2019 Global Family Business Survey, to which KPMG Private Enterprise contributed its insights. The report probed how family businesses throughout the world are dealing with succession and governance challenges in light of changing social demographics. We didn’t realize the degree to which those challenges would be amplified in the coming months as the head-on impact of COVID-19 led many family business owners to seek new ways to sustain the legacy of their companies. For many, succession and governance issues and the need to draw on innovative, multi-generational ideas for the future came to the forefront.
Regardless of the family business situation at any particular point in time, one principle holds true: there will (and should) always be questions about what comes next, including who will take over when it’s time to retire. Many family business CEOs want the next generation to continue building on the foundations they laid. But how might those foundations need to change for the new reality ahead? And how can you be sure the next generation is ready to take the business in that direction?
The results of the 2019 Global Family Business Survey offer valuable ideas and insights about planning for this transition in your business. Additional in-depth interviews with family business leaders across the globe provided us with firsthand and profound perspectives on many succession issues. I encourage you to learn about their personal views and succession experiences when these family stories are published in a series of articles on the KPMG website beginning in October.