Family-owned businesses in the US contribute $7.7 trillion to the GDP and create 83.3 million jobs. Deloitte’s survey highlights the importance of entrepreneurship, vision, and community dedication. Succession planning, managing family dynamics, and simplifying ownership structures are key considerations for multigenerational businesses.

46% of the next generation expects leadership roles, while 28% of current leaders plan to transfer power within five years. Establishing a family constitution and board can facilitate interaction and succession planning. Independent advisors play a crucial role in providing strategic perspectives and bridging generational gaps.

A board of directors can help sustain a family business’s success beyond the founder’s tenure by providing expertise and oversight. Research supports age diversity on boards for smoother leadership transitions. Formal agreements outlining roles and decision-making processes can foster accountability and trust within the company.

Family businesses are local mainstays, contributing to communities. Estate planning and family foundations can help sustain philanthropic values. Gifting expectations and educating next-gen leaders on charitable endeavors are crucial for aligning donations with the family’s vision and mission.

Mergers and acquisitions provide options for multigenerational family businesses, strengthening their position in the market. Employee stock ownership plans (ESOPs) can facilitate generational transitions and provide tax benefits. Preserving the heritage of a family business requires strategic adaptation and dedicated wealth management for enduring success and seamless transitions.

Read more at Yahoo Finance: BofA’s president of Global Commercial Banking on best practices for securing the legacy of a multigen family business