A dynasty of one's own

Financial Planning,  October, 2007  by Elizabeth O'Brien

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From Sumner Redstone's media conglomerate to Edward Johnson's financial services empire, the succession battles of high-profile family businesses have hit the headlines in recent months. Yet even if you don't own a Viacom or a Fidelity, transferring a business from one generation to the next still poses serious challenges. In fact, about two-thirds of all family businesses fail to make it from the first generation to the second, according to family business consultants.

As an advisor, you can try to improve the odds for a family business' survival. At the very least, you can help ensure that the family makes a deliberate decision about the business' future course, instead of having their hands forced by an unexpected death or other circumstance. Along the way, what you learn could help you transition your own business.

You probably already have entrepreneurs among your clients. If you don't, ...