The Succession Planning Survey Results
Is your family business ready for ENTRY?
Is your family business ready for EXIT?
September 2022
Dear All
In September 2022, I conducted a survey of family businesses. Around 70 participants responded to the survey. I am happy to share the responses with all of you.
Family business succession is an extremely important element for the family business. As per 2017 report by Karvy Private Wealth – in the coming decade wealth worth US$ 128 billion (almost 10 Lakh Crores) will get transferred from one generation to another generation.
This wealth was generated by intrepid founders, entrepreneurs and business owners over a period of 40 years, which will be inherited by the next generation.
I hope this effort will help the family business fraternity to plan better succession plan for their business and help them successfully transfer their wealth, management as well as ownership control to the next generation.
I look forward to your comments and suggestions.
Warm regards
Sandesh Vasant Mestry
M| +9198 2001 4999 E| sandesh@mestry.in W| www.family-business.in
Respondent’s Profile
Respondent’s Profile
98% feels Family adds value by owning and managing business
Shareholding of the Family
Only 31% businesses have
written long term
Strategic Plan
65% say there is some
plan shared with
stakeholders
65% say there is formal organisation structure
with reporting protocols
And 63% are preparing the team to develop
management bandwidth
75% Claim clear Role and
Responsibilities among
Family Members
At the same time, 52% say
No monthly review to share business performance
76% confirms that there is
no compulsion to join
Family Business
76% feel that Family
members should be
professionally qualified
63% confirms no formal
decision-making process
67% say No process for
managing disagreements
55% claims the agreement
on Pay & Perks for
working family members
63% of the Next Gen is not
aware about the positions
to succeed
80% confirms No
structured induction
process
71% businesses have not
identified the development needs of the Next Gen
44% respondents confirms financial plan for retiring family members
54% say senior generation
has alternate engagement
post retirement
78% agree for an alternate
income stream for Family
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71% say post retirement
seniors have no plans to
move out of their office
60% say there are defined Family Values guiding the
business
92% mentions that the
family celebrates together
every year
66% confirms that the next generation is comfortable working together
86% claims next generation has opportunities to work
together
76% feels the communication among family is healthy
69% conforms that the
Family has agreed to stay
invested in the business
52% confirms knowledge
on ownership pattern in
the family
68% are not clear on
transfer of ownership in
next generation
55% confirms knowledge
on rights and rewards of
ownership
67% feel the non working
shareholders are not clear
about their role
71% are not aware on the
sale of shares by family
member
