The Morning Brief Boardrooms and Bloodlines: How Small Family Businesses are Planning Succession
Jun 6, 2025
Srinath Sridharan, a corporate advisor and author of 'Family and Dhanda', joins Falguni Shah, Partner at PwC, specializing in family business dynamics. They discuss the pressing need for formal succession planning in Indian family businesses as generational transitions approach. Insights into emotional dynamics and legal challenges are shared, along with the significance of family constitutions. They explore the evolving landscape influenced by private equity and changing cultural attitudes, highlighting the importance of governance structures and gender inclusion in leadership roles.
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Formal Succession Gains Ground
- Small family businesses across India are increasingly formalizing succession planning and governance.
- This shift is driven by investor demands, growth complexities, and the need to avoid disputes.
Prioritize Succession for Investors
- Families must establish clear roles, responsibilities, and governance before inviting external investors.
- Succession plans ensure transparency and business continuity required by private equity and public markets.
Governance Complexity in Family Firms
- Family and business often overlap in Indian family firms causing challenges in governance.
- Transparency in related-party transactions and clear governance at family level are essential.
