The Family Business Consulting Group and Plante Moran revisit a landmark 1995 survey to see what's changed in family enterprise — and what hasn't.
In 1995, a seminal survey captured how American family enterprises managed governance, succession, ownership, and family dynamics. Thirty years later, The Family Business Consulting Group and Plante Moran partnered to recreate this historic study.
The findings reveal a reassuring truth: family businesses remain optimistic, financially prudent, and deeply committed to multi-generational continuity. With strong structural and technical foundations now firmly in place, leaders have a compelling opportunity to bring that same intentionality to ongoing family communication and alignment.
Click here to download the full report.
Author: By Todd Smith, Principal, CFAR
In the United States, people are living significantly longer. Today, US census data tells us that our average life expectancy is 79.4 years old – a full ten years more than 50 years ago (69.6 in 1955).
Roughly half of small business owners in the U.S. are now over the age of 50, and a large share of first-generation founders are approaching, or well past, traditional retirement age. Longer, healthier lifespans mean many owners are choosing to stay active in leadership far longer than their parents did, sometimes well into their 70s and 80s. This happens for good reasons leading generation members still want meaning in their lives well into their traditional retirement years. They may also be reliant on the operating company as a source of income in their planned retirement years. And, frankly, it can be difficult to let go of something a founder has spent their entire life building. These factors, among others, can discourage “letting go” of control.
As one can imagine, this choice to retain control has consequences. Though they are not universal – in some family systems, early work on the concept of stewardship keeps the family in alignment during an extended transition; in others, the perceived lack of control and/or feelings of infantilization can become all-consuming. Regardless, for the following generations to thrive together a new balance must be struck.
Click here to read the full article.
Author: Jordan Waldrep, Chief Investment Officer, Trust and Wealth at Bank OZK
Introduction to Illiquidity Budgeting
Family offices face a unique set of challenges in the world of investing. Unlike endowments or pension funds, which have well defined, actuarily determined liabilities to meet in the future, a family office serves the needs of a specific family with different generations and spending patterns that make future cash demands difficult to forecast. A family office can plan for future liabilities and then suddenly face a major real estate purchase, a new philanthropic pledge, a new business opportunity, or just an unexpected life event within the family. This unpredictability arises from the unique and multifaceted considerations of the family and makes focusing on liquidity a vital part of the family’s wealth management. Specifically, in the modern world of investing, it is a question of how the illiquidity within the family office’s alternative investment portfolio is thoughtfully sized considering the broader portfolio and cash flow needs over the short and long term. Importantly, there are lessons in illiquidity budgeting that can be applied to individual investors as well.
Illiquidity budgeting is the disciplined process of determining how much of a portfolio can be prudently committed to assets that cannot quickly be converted to cash without facing substantial losses. This has become an important and misunderstood tool in family office portfolio construction. When done poorly, a family office can become hamstrung by the illiquidity of past investments. When it is done well, it allows the family to capture the return premium of illiquid assets to generate better long-term returns for the family while still preserving the flexibility necessary to meet the unpredictable needs of the family.
The Importance of Illiquidity Budgeting for Families
Illiquidity budgeting is a key part of planning for pension funds and endowments, and it is just as important for families. The difference is, as we said, the unpredictability of family liabilities. This creates positive and negative aspects for the family office when compared to institutional investors. The key advantage is timeframe. A family office can plan for multi-generational growth and can consider locking up assets for longer timeframes than many institutional investors can consider. Families can absorb longer lock-ups or investment horizons than an institutional investor with significant near-term obligations. This translates into a smaller universe of potential investors and thus less competition for such long-duration investments, increasing the potential for greater returns over time. Another key advantage for most family offices is flexibility, as they often do not have the same kinds of direct obligations that a pension or endowment must meet. This gives them more flexibility with their illiquidity budgeting over time.
Author: Claudia Binz Astrachan
Don’t wait for a vacancy. Prepare family members now — through education, mentoring, clear expectations, and hands-on experience — to serve on boards, family councils, and committees.
Family members serving in governance roles can be an incredible asset to the family enterprise system. Family directors typically bring a deep understanding of business and family values, culture, and history -- and can therefore provide guidance and oversight that aligns with the past as well as the shareholders’ envisioned future. Those serving in governance coordinate the interface between ownership and enterprise, facilitate tricky conversations, coordinate family gatherings, and arrange educational activities and engagement opportunities for the next generation.
Sadly, family members don’t always manage to successfully perform their various governance roles. Sometimes a family director lacks basic financial literacy or a sound understanding of governance boundaries, or a family council member embraces partial views favoring individual preferences rather than collective wishes of the family. Boards or family councils can become dysfunctional because of toxic family dynamics; such governing bodies drive away the best talent.
We’ve seen that families don’t end up with the best talent for these important roles unless they have a transparent, rigorous, and sensible process to educate and develop, identify, select and elect, onboard, evaluate, and eventually offboard family members suited for governance. This article discusses both the most useful capabilities for family members taking on governance roles, as well as a sensible process for developing a pool of talented and motivated family members for governance service.
Read the full article here.
Family-owned businesses are built on vision, resilience, and oftentimes generations of sacrifice. When the time comes to transition ownership, whether through succession or sale, the process is far more than a financial transaction. It represents the culmination of years of effort, identity, and legacy. For many business owners, this moment brings emotional and logistical complexities that demand thoughtful, strategic planning.
Selling a business also introduces critical decisions around wealth continuity, tax efficiency, and stewardship beyond the sale itself. Navigating this transition with clarity and foresight ensures that both personal and financial legacies are preserved, setting the stage for enduring success across generations.
Establishing a formal family governance structure is a foundational step for families seeking to preserve unity, ensure long-term business success, and protect their legacy across generations. While governance often begins with planning for the family business, its scope can and should expand to encompass broader family enrichment, including the thoughtful transition of knowledge, values, and wealth. At its core, effective governance is built on clear, consistent communication and a shared commitment to professionalism, accountability, and openness.
As families grow in size and complexity, the need for structured decision-making becomes increasingly critical. A well defined governance framework reduces conflict, fosters collaboration, and provides a forum for diverse perspectives. It promotes transparency and alignment with shared values, strengthening both business and family cohesion.
Read Rockefeller Global Family Office Full Whitepaper – Click Here
Family businesses remain one of the most resilient and influential forces in the global economy. Yet as economic uncertainty, technological acceleration and leadership transition converge, the decade ahead will likely demand new levels of preparedness.
The KPMG Global family business report 2026 captures insights from 1,927 family and founder‑led business leaders across 41 countries. The findings reveal a sector that is strategically confident and values‑driven, but increasingly aware that traditional ways of operating may no longer be enough.
Across markets and generations, leaders describe a shift underway, from family‑run operating businesses to family‑owned enterprises, governed through boards and led by professional management.
Read more at: https://kpmg.com/xx/en/our-insights/ai-and-technology/global-family-business-report.html
Download the report here: https://assets.kpmg.com/content/dam/kpmgsites/xx/pdf/2026/05/kpmg-global-family-business-report-2026.pdf
When legacy feels distant and the next generation stays silent, could a simple council be the key to unlocking your family’s future?
In the complex world of family wealth, managing transitions and preparing the next generation can be a make-or-break moment. But what if the real solution lies not just in preserving wealth, but in empowering the next generation to take over the reins and lead?
Enter the Next-Gen Council—a structured space where younger family members can step up, engage, and claim their voice. As a partner to family offices across borders and generations, we often see successful families use councils to bridge generations while transforming their family’s legacy from the inside out....
https://www.bernstein.com/our-insights/insights/2026/articles/how-next-gen-councils-are-revolutionizing-family-office-wealth-management.html
The deepest questions wealth raises are rarely financial—and the wisest families know it.
https://www.bernstein.com/information/resources/2026/pdf/wealth-beyond-measure.html
The One Big Beautiful Bill Act: One Year Later, What Really Stuck?
Click Here to View Presentation
Apr 30, 2026 | Family Businesses, Family Owned Business By Kristen D. Matteoni
Among the leading domestic jurisdictions, Nevada has emerged as a premier destination for high-net-worth families seeking flexibility, tax efficiency, asset protection, and long-term dynasty planning. While states such as Delaware, South Dakota, Alaska, and Wyoming are frequently included among the so-called “Big 5” trust jurisdictions, Nevada offers a particularly compelling combination of advantages that merit careful consideration. This paper explores the “Nevada Advantage” through the lens of tax planning, trust flexibility, and legal protections – highlighting why many business owners are increasingly looking West.
Read more at https://familyenterpriseusa.com/family-businesses/the-nevada-advantage-strategic-trust-and-tax-planning-for-the-modern-family-business/
Contact Us:
P.O. Box 492 Carmichael, CA 95609 (916) 771-3220
Privacy Policy | Terms of Use
