The future of family business in Canada

Do any of your clients own a family business? If so, they may be getting ready to transfer it in the next five years.

A new KPMG report called Family Ties finds almost half of Canada’s family business owners expect to see an intergenerational transfer of management or ownership within the next five years.

Yet, more than 80% have no formal plans to manage the transfer, maintain the business and ensure future generations will continue the legacy.

“Business families are optimistic about the future, but have limited knowledge and understanding [of how to transfer their business],” says Allen Taylor, chair of the Canadian Association of Family Enterprise.

Other key findings:

• The biggest challenge facing future generations is gaining the right experience, skills and business knowledge while overcoming entitlement issues
• Majority of the future generations identified open dialogue, mentorship programs, and formal training and development as key factors in deciding whether to join the family business
• 90% of younger family members believe family business and industry associations play an important role in their success.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.