I am really interested in the issue that families often struggle and even fail to make the transition from one to another generation. Usually it is in particular difficult handing over the business from the first to the second generation. Why is this the case? I think that the first generation, the founder, is often too authoritarian as well as dominant. What might also influence the failure is that the founder is too busy and occupied with operating the business and thus is not concerned about the fact that one day he/ she might not be able to run the business anymore, either due to sickness or even death. I can understand them to a certain amount. Who likes to think of dying some day?
However no one lives forever, this and the fact that most founders want that their business remains in possession of the family and therefore stays competitive and profitable, succession planning is inevitable. Probably the sooner the better, since you never know what is happening in live.

The issue of succession planning is quite complex, often consultancy is needed and decisions can take up to several years.

I found a relatively short and easy article, published in forbes magazine, that suggests succession planning can be done in five steps.

http://www.forbes.com/sites/allbusiness/2013/08/28/5-steps-to-create-a-viable-succession-plan-for-your-family-business/

Check it out and enjoy!

Cheers!