A new book was recently published that addresses some interesting angles of the challenges of successful business succession to daughters. Approximately 80 percent of all businesses are family-owned world-wide. A third of businesses are owned by women. According to research completed by the U.S. Small Business Administration, in 2002, California had the highest number of women-owned firms of any state. U.S. Census data also finds it is more common for wives or daughters to take over family businesses.

Proper business succession planning is vital during a time of flux for any family-owned business. A California estate planning attorney can help ease the transition by addressing possible succession issues.

Possible Conflicts with Father to Daughter Succession

In the new book, author Daphne Halkias, a social science researcher at Cornell University, looked at the social dynamic of business succession from fathers to daughters. She noted that additional conflict may arise in a family business succession to a daughter when a father does not want to give up control or tries to wait for a marriage to pass the firm to a son-in-law.

Halkias conducted surveys in various countries and found that sons more than daughters wanted to continue the family business. More women who were surveyed wanted to start their own independent business.

One important factor in any business succession plan in to maintain healthy family relationships. Family business succession is not always done successfully and only about 30 percent of family businesses continue to a second generation.

While the process of setting up a business succession plan may seem overwhelming, it should be started early enough to allow for a successfully transfer. If children are in a position to take over and run the family business, a consult with an experienced business succession attorney can help smooth the process with the goal that the business continues successfully into the next generation.

Source: Bloomberg Businessweek, "Father and Daughters: Passing on the Family Business," Karen Klein, Dec. 27, 2011