92% of family business owners want to keep their business in the family - but is the next generation ready? A vast majority of family business owners in the UK, 92%, intend to pass their business down to the next generation. However, new research suggests that many may not be preparing their successors adequately for the transition.
A recent survey by Hymans Robertson Personal Wealth of over 500 UK family business owners highlights significant challenges in succession planning. While the desire to keep the business within the family is strong, only 15% of owners believe their chosen successors are fully prepared to take over. The study also found that 38% of business owners struggle with a lack of interest or capability among potential heirs. Family conflicts (36%), business stability concerns (35%), and tax burdens (34%) further complicate the process.
Jeff Simpson, Chartered Financial Planner at Hymans Robertson Personal Wealth, emphasises the importance of early planning to avoid these pitfalls: “Transitioning ownership of a family business is one of the most critical moments in its history. Without the right preparation, it can put both the business and family relationships at risk."
"Taking proactive steps - such as mentoring the next generation, structuring tax-efficient ownership transfers, and having open conversations about succession - can make all the difference in ensuring a smooth and successful transition.”
The full research report delves deeper into these challenges and offers actionable insights for business owners navigating succession. Read the full findings here
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