MOST bosses of local family businesses fear the next generation is not ready to take over the reins.

New research shows that more than half believe a handover of control will not happen for at least ten years while nearly half think changes will be needed in company structures to enable their successors to benefit.

The findings are included in a new report from Bradford and Leeds law firm Gordons, based on research and interviews with more than 70 stakeholders in Yorkshire family-run firms.

The report – Future Proofing Family Businesses: Generating and Preserving Wealth – also shows that more than a third of respondents said they had family members who did not want to get involved in their businesses and 72 per cent said they were open to bringing in new blood from outside the family to run the firms.

Of the 20 per cent whose families did not want to recruit outsiders, the main reasons cited were losing an element of control and fears about differing interests causing conflicts.

The survey also revealed that family tensions within businesses remain an issue, with 44 per cent of those who had taken over from previous generations saying there had been difficulties or frustrations during the transition.

Half of those who had experienced problems put it down to the unwillingness of their forebears to surrender control.

Simon Pilling, a partner in Gordons’ corporate team, said: “Our starting point was a desire to provide stakeholders in family businesses with genuine insight into the opportunities and challenges they face, both today and, importantly, in the future.

“The report examines issues concerning family businesses and protecting value for future generations, including company management, finance provision, succession and wealth preservation. Its findings confirm that these matters are high on these companies’ agendas.”

He said the candid opinions of respondents had provided a clear understanding of their true thinking about a range of issues.

Although the research covered a varied range of size and type of businesses, similarities between organisations involved had been revealed.

Simon added: “Significantly, there was also a genuine shared feeling of confidence about the future, which is encouraging for the regional and wider national economy.”

The report’s launch follows an event for family business managers held by Gordons’ in November, where speakers included John Tordoff, chief executive of family-run Bradford-based motors group JCT600, and John Ridings, non-executive director of Ilkley-based engineering, IT and facilities services business NG Bailey.

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