Legacy and succession planning trends and advice
Only 3% of family-owned businesses survive until the fourth generation and beyond. There appears to be a cross-generational disconnect with family owned business succession. We explore past and present trends and cast a glance to the future regarding successful planning to help ensure legacies live on and thrive.
family office trends

By Francois Botha
Published on Simple October 5, 2020

As much as things change, they stay the same… or do they? One would be forgiven for assuming that Family Offices are a new concept. In fact, the practice of employing an independent party to manage the investments of wealthy individuals and families dates back to the sixth century. The function then, as it is now, was to outsource centralized wealth management with one primary goal, to ensure cross-generational succession and continue the legacy.

Heirs needed to be produced and step-up into leadership roles without question. Some families became their businesses and stood the test of time. Others didn’t. It would appear that independent Family Office consultants played a pivotal role in succession planning thereby ensuring the longevity of the legacy.

Research conducted by the Family Business Institute, specialists in succession planning, shows that 30% of family-owned businesses survive until the second generation, 12% to the third and only 3% to the fourth generation or beyond.

This is indicative of how business paradigms have evolved during the various Industrial Revolutions through which economies and successful family owned businesses have endured. And it makes sense.

About the Authors

Francois Botha

Francois Botha

Simple Founder. Strategy Advisor

Francois believes that the next generation of family leaders need new, simple tools and trusted experts with a fresh outlook.

Connect with Francois Botha View Francois Botha Profile

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