Family businesses account for over 50% of U.S. GDP, and 35% of Fortune 500 companies are controlled by families. These companies are vital to the economy, offering stability, a long-term commitment, and responsibility to their communities and employees. Although family-owned businesses are responsible for 60% of jobs in America, a recent family business survey done by the National Bureau of Economic Research’s Family Business Alliance indicates that despite succession being a critical issue for many family companies, only 15% of them have anything resembling a succession plan in place. Furthermore, businesses have a difficult time surviving through multiple generations; just making it to the second generation is a milestone event; only 30% make it through the second generation, and just 12% make it through the third (“The Family Business Sector in 2016: Success and Succession,” PricewaterhouseCoopers, https://pwc.to/2D3ftcF).
This article explains how CPAs, as trusted advisors, can play a significant role in establishing prudent and functional succession plans for their business owner clients.
Saymaz, Savas and Lambert, Hugh H. (2019). "Family Business Succession Planning Opportunities." The CPA Journal December 2019, 64-69.
Please note that the Publication Information provides general citation information and may not be appropriate for your discipline. To receive help in creating a citation based on your discipline, please visit http://libguides.sjfc.edu/citations.