Michigan Business Network

Chris Holman welcomes Jim Benedict, a managing director at PNC Private Bank and an expert on business succession and transitions. [Up to speed notes from PNC: Most people are surprised to learn that more than 27% of U.S. companies are family owned. In fact, family-owned businesses contribute $5.9 trillion — or about 64% — to total U.S. GDP. Despite being a major driver of the U.S. and local economies, it’s not uncommon for family businesses to cease operations after the first generation exits the business. And, unfortunately, about 50% of business transitions occur involuntarily due to what has been coined by the Exit Planning Institute as “the Five Ds:” Death, Disability, Divorce, Disagreement, and Distress.] Q. Jim, I understand that more than a quarter of all U.S. companies are family owned. Despite the huge impact family businesses make on the economy, a large percentage of them don’t survive after the first generation exits the business. Why is this? Q. Obviously every family-owned business wi