Succession in a family business can be a challenging process. In addition to making decisions based on what is strategically best for the business, the desire to keep the company under family control can bring another layer of emotional complexity. It can be challenging to separate work and family life, and the stress of succession can have a huge impact on business and family relations.

Every business succession is unique. Whereas some families are forced to undergo a succession prematurely due to sudden illness or death, other families may struggle with a senior generation that refuses to let go of the control. It is critical to consider different succession options, and the challenges and opportunities involved. A succession can either be a transfer of ownership, a transfer of management, or both, though they do not have to happen at the same time. The transfer of control can be within the family or outside to external management or to financial investors, or it can be a combination. Nonetheless, there are some common issues that are important to take into account in any succession. The figure on the right illustrates the different succession options.