According to academic research, only 30% of family businesses continue to exist after being passed to the next generation. Less than 10% of family businesses continue to exist after being passed to the family’s third generation. In other words, if the founder of a family business decides to leave his business to his children there is a real danger – 70% likelihood and 90% likelihood for his grandchildren– that his children (or grandchildren) will not enjoy the benefits of the business that he worked hard to establish.
So what can be done? The solutions are many and wide-ranging as FBC’s Adv. Shalom Hershkovitz a partner in the firm’s Private Client and Family Wealth Management Department explains in the legal update.
Please find the full legal update here (Hebrew)