Second Generation Business

Multi-generational family-controlled businesses have long been part of the American dream, and some have proven highly successful. Think Wal-Mart or Anheuser-Busch. However, business succession is no simple family matter.

According to the Small Business Administration, 90 percent of U.S. businesses are family owned, but only 30 percent of such companies succeed in the second generation. Just 15 percent make it to the third. That's because most business owners fail to plan seriously for their own succession. Smooth succession planning is something that takes time. The hand-off needs to be carefully planned and executed if it's to be successful.