According to a playbook published by Goldman Sachs, only about 12% of family-owned businesses remain under family control by the third generation. François-Xavier de Mallmann, chairman of Goldman Sachs’ Investment Banking division for the EMEA region, explains that the main threat to these businesses is typically not missing legal documents, but optimism from founders. Family and business interests tend to converge during the first generation but diverge over time as the company grows, the shareholder base expands, and priorities of family members evolve. Many founders delay formalizing their succession plans due to immediate priorities and a desire for more visibility before making consequential decisions.
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