Goldman Sachs Flags 32 Million U.S. Family Businesses Facing Succession Hurdles
Updated
Updated · Fox Business · Sep 28
Goldman Sachs Flags 32 Million U.S. Family Businesses Facing Succession Hurdles
3 articles · Updated · Fox Business · Sep 28
Summary
Only 3 in 10 family-owned businesses reach a second generation, and just 1 in 10 make it to a third, Goldman Sachs leaders said in a podcast on succession planning.
FX de Mallmann said the stakes are large: more than 32 million U.S. family businesses make up over 80% of all businesses and account for more than 60% of GDP and the workforce.
He said founders must decide both whether family members should keep managing the company and how ownership should be transferred, ideally setting exit rights and conflict-resolution rules early.
Tucker York said succession plans cannot be one-and-done because capital needs, investors and family goals change, requiring regular review and stress testing.
The discussion underscores a broader economic risk, with family-owned businesses representing about 70% of global output and 60% of jobs while generational handoffs remain uncommon.