Changing dynamics of family business: Creating value across generations

Monday, 7 July 2025 05:51 - - {{hitsCtrl.values.hits}}

Workshop on “Family Business Dynamics – Creating Value across Generations” was held in January 2025

ZZ Turnaround Solutions, specialising in guiding businesses and families through critical transitions with precision, expertise and care, says family businesses are often characterised by their deeply ingrained values, strong sense of identity, and long-term vision. However, they face a unique set of challenges when it comes to ensuring their survival, growth, and success across generations. The process of multi-generational transition — the transfer of leadership, wealth, and values from one generation to the next — is critical to the ongoing vitality and success of family-owned businesses. Effective multi-generational transitions not only preserve the family legacy but also create new value for future generations, ensuring that the family business thrives over the long term.

ZZ Turnaround Solutions Lead Turnaround Advocate Zowfir Zaheed said a key challenge that family businesses face is the transition of leadership from one generation to the next.

“As a business moves through generations, it is inevitable that the values, skills, and vision of the family will evolve. However, this evolution needs to be managed carefully to maintain continuity and avoid potential conflicts that can arise from differing visions, expectations, and generational priorities,” Zaheed added.

According to him, one of the most common reasons for family business failure in the transition process is a lack of preparation. Studies show that only about 30% of family businesses successfully make it to the second generation, 12% to the third, and only 3% survive to the fourth generation. Without a well-planned transition, family businesses risk losing not just their wealth but also the family’s sense of unity, purpose, and shared legacy. Ultimately, the key to creating lasting value across generations is to view the business as a living legacy — one that evolves, adapts, and continues to create positive impact while remaining rooted in the family’s traditions and vision.

Zaheed said ZZ Turnaround Solutions brings together a handpicked team of subject matter experts across Tax, Legal, and Shariah advisory disciplines to help family businesses. “Our integrated approach ensures that clients receive comprehensive solutions tailored to their unique challenges and goals,” he added.

The range of Advisory Services offered includes Assist in Formation of Constitution, Office and Council; Ownership and Governance; Succession Planning; Conflict Resolution; Process Improvements i.e. Business Turnaround Strategy and Specialised Services i.e. Philanthropy.

“Whether one is navigating a business transformation, planning a multi-generational transition, or optimising tax and legal structures, ZZ Turnaround Solutions is committed to delivering clarity, strategy, and sustainable success,” Zaheed said.

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