Family businesses can often have a number of complications that can cause them to cease trading as they change hands through the generations. In fact, according to a report from the Harvard Business Journal, an estimated 70% of family-owned businesses fail or are sold onto new owners before the second generation are able to take the reins.
Only 10% of family businesses continue to be active in business, and often remain as privately owned companies for a third generation to take the lead.
This may not seem like a large statistic – however, with 8 in 10 businesses being family run, this is an alarming amount of businesses to cease trading. As accountants in Shrewsbury, we live in a town that is filled with family owned businesses and are passionate about helping secure the future of family owned businesses.
But why do so many family run businesses fail before they are taken over by a new generation? Some of the causes are often listed as a lack of succession planning, a lack of a business strategy and financial audits.
Many family businesses across Shropshire choose us as their Chartered Accountant as we understand the unique challenges these businesses face. We’re able to complement our client’s skills and experience levels with our own to ensure the ongoing success of the business and help them seamlessly move through the different ebbs and flows of their business as it changes hands.
Our ability to offer services in succession planning, as accountants in Shrewsbury, means we can ensure a smooth transition of the family business to the next generation. In cases where this isn’t possible, we can also support in the sale of a business.