The number of blended family businesses in the UK have increased and they will become increasingly important over the coming years, according to a new survey.
Findings by Families in Business reveal that there has been a rise in blended family businesses in which a member of a second family has been invited into a senior position.
However, this also brings about a unique set of problems and an extra layer of family dynamics that are difficult to manage.
Dani Saveker, CEO of the company that carried out the research, said : “The number of requests for advice from blended families businesses has increased in 2014. Particular areas of concern are disagreements that arise from conflicting loyalties and feelings of inequality.”
The study shows that family businesses are mirroring the changes in society, as the normal way in which families operate has changed considerably over the last 100 years.
Who Are Some Popular Blended Family Businesses?
● News Corporation- Rupert Murdoch and his son James Murdoch. Murdoch’s eldest son Lachlan resigned in 2005 but has remained on the News Corporation Board.
● Suzuki- the current chairman of the car manufacturer is the fourth adopted son in a row at the company.
● Wilkinsons- led by Lisa Wilkinson, granddaughter of the founder JK Wilkinson.
● Audrey Baxter – Chief Executive of Baxters Food Group.
Further findings show:
● 70% of family businesses have no formal succession plans
● Just 5% have a formal plan in place
● 22% admit they don’t believe one is necessary
● 84% of the most senior executives are male
● 92% of shares are held by the family which proves a problem when trying to incentivise non-family executives.
200 firms took part in the study, all of which are families businesses from across the UK in various industries and market sectors. They also ranged from second to tenth generation companies.
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