Family business succession and external advisors: the relevance of 'soft' issues

• Published in: Small enterprise research Vol. 24; no. 2; pp. 167 - 188
• Main Authors: Cesaroni, Francesca Maria, Sentuti, Annalisa
• Format: Journal Article
• Language: English
• Published: Wellington Routledge 01.01.2017; Taylor & Francis Ltd
• Subjects: accountant; Accountants; advisor; Advisors; Attorneys; Case studies; consultant; Entrepreneurs; Entrepreneurship; external services; Family business; Family owned businesses; hard issues; Professional relationships; psychologist; Small & medium sized enterprises-SME; Small business; soft issues; succession; Succession planning
• ISSN: 1321-5906; 2204-230X; 1175-0979
• DOI: 10.1080/13215906.2017.1338193

This paper focuses on family businesses' opinions and perspectives concerning soft issues raised by the succession process and their willingness to involve an external advisor. An empirical research study based on multiple case studies was carried out. Through 25 direct interviews with the incumbent and/or successor, 15 Italian family businesses were analysed that have experienced or are going through a succession process and have involved, or have chosen not to involve, external advisors. Results underline that many family businesses are aware of the relevance of soft issues for a successful outcome of succession. However, this awareness does not always turn into a real request for advice. Family businesses often consider succession planning a private affair and prefer not to share it with external subjects. Instead, family businesses that have asked for external advisors have often complained, saying that they are mainly focused on hard issues and forget that managing soft issues is often the real key to effective succession.