McKinsey studied 200 family business successions. The biggest problem wasn’t the heir — it was the outgoing CEO
McKinsey research indicates that family-owned businesses tend to underperform for five years following a CEO transition, with returns falling by an average of 5.7%. Contrary to popular belief, the data suggests that the successor's quality is not the primary issue. Instead, the outgoing CEO's approach to leaving, either by departing too abruptly or by remaining too involved, significantly impacts the business's post-transition performance. AI
