When succession skips a generation

I suspect the combination of "owner fatigue" as COVID-19 continues to affect the economic landscape, and the ageing of Baby Boomers meaning that we are already in the midst of a landscape where succession of one form or another is inevitable, will result in more and more family-owned businesses coming to market.

Many of them will not have been well prepared for sale, and the economic climate will further impact on values.

It's not a silver bullet viable in every situation, but owners bringing in high-calibre non-family talent to leadership roles and moving themselves to a Board with proper governance structures in place makes an awful lot of sense to me.

It helps make a business more saleable should an owner choose that path, or provides a sustainable long-term solution if the business is to remain in the family.

This piece from Insead is well worth exploring to learn more…