Recognising the trends in family-run businesses is an interesting one. While they do not always have the best reputations due to the conceivable pitfalls of working with family, which the article and Boston Consulting Group allude too, they must be getting something right.

However, there is a notorious expression amongst family businesses: ‘the first generation makes it, the second generation spends it, and the third generation blows it’. So where are they potentially going wrong? They are often criticised for the baggage that can come with them. Whether succession disputes, inheritance duties/tax or even uneducated decisions, the common denominator is usually poor planning. Studies have consistently found that only 1 in 3 successful business owners has built a fruitful estate plan.

This might be avoidable with better financial planning and education, potentially with the help of an expert adviser who specialises in succession and inheritance, or making more informed decisions based on education.