It is often said that one of the most important considerations in any investment is the exit strategy. An exit strategy is important for a family business, too, but it is more complicated. Day-to-day operating pressures, lack of formal d e c i s i o n - m a k i n g processes, concentration of family wealth in the business, and reticence to confront family and ownership issues all may get in the way. Nonetheless, succession planning is one of the keys to making sure a family business can continue successfully. Statistics show that only one in three family-owned businesses will succeed in the second generation. It is important to create a succession plan and set benchmarks to monitor its implementation.

Here are some basic steps....