Recent surveys provide some alarming statistics. Only one percent of family-owned businesses in North America reach a third generation with family members running them. Another report shows that 30 percent of all family-owned businesses have not considered a successor, with only 63 percent having done so when the owner has already reached age 65. Finally, another recent survey shows that more than 58 percent of small-business owners list inadequate succession planning as the biggest threat facing their business.

Given the fact that 90 percent of the 18 million-plus businesses in America are family-owned and managed, it’s obvious that a solid succession plan will be important should the majority owner.