Succession for Small Business
There is an ancient Chinese proverb which roughly translates to “Wealth does not pass three generations” and has an equivalent in many cultures. History is littered with examples of this with none more spectacular than the rise and fall of the Roman Empire. Granted the rise and fall of the Roman Empire took significantly longer than three generations there were definitely three distinct parts: the creation of the Roman Republic, transformation of the Republic into the Roman Empire, and lastly the fall of the Roman Empire. With such incredible historic examples it should then come as no surprise the life of the family business follows a similar pattern. Statistics tell us only 30% of family businesses survive the transition to the second generation and only a mere 10% to the third.