In most closely-held family firms formal succession plans are not needed because succession is passed on through succeeding generations.

Question

Quizplus · Accepted Answer

While succession may often be passed on through succeeding generations in closely-held family firms, having a formal succession plan is still important to ensure smooth transitions and continuity of the business. It can also help avoid potential family conflicts and ensure that the best candidate is chosen for the leadership role, regardless of family ties.

In Most Closely-Held Family Firms Formal Succession Plans Are Not