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Baby Boomers Struggle With Succession

The Telegraph, 9/25/07

Abstract:

Business advisers are bracing themselves for a tidal wave of family businesses changing hands as their 'baby boom generation' founders decide to pass on control to their offspring or sell up.

It will be the first time that these businesses have had to deal with the issue of succession and advisers say that many will struggle with the strain that it can put on family relationships...

..."It's a tsunami of wealth transfer," said Amy Braden, head of JP Morgan Private Bank's Family Wealth Center, pointing to estimates that at least $41 trillion will be transfered between generations over the next 50 years in the U.S. alone. "It's the perfect storm of baby boomer demographics and a period where there was tremendous wealth creation."

She said the process of changing ownership and management control had become more complicated as family values have changed since the 1960s and the next generation were increasingly prepared to challenge the conventional succession planning models.

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