Partner Article

Next generation unprepared says Yorkshire family firm stakeholders

Two-thirds of senior stakeholders in Yorkshire’s family businesses think the next generation is not yet ready to take over, according to new research commissioned by Yorkshire law firm Gordons.

Most respondents (56%) envisage the next handover will not happen for at least 10 years and almost half (44%) believe changes will be needed before they relinquish control, as they feel their businesses’ current ownership structures would not serve the next generation well.

Over a third (37%) of respondents said they had family members who did not want to get involved in their enterprises.

Over seven in ten respondents (72%) agreed their families were open to bringing people into the businesses who were more skilled at running them than themselves.

Of the 20% 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.

More than 70 senior stakeholders in the county’s family businesses took part in detailed telephone interviews for the research.

The survey also revealed that family tensions within businesses are by no means a thing of the past. Almost half (44%) of the stakeholders who had taken over their companies from previous generations felt there had been difficulties or frustrations during the transitions.

50% of those who had experienced these issues said the reason was 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.

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

Gordons acts for a large number of such enterprises, across a wide range of sectors, including Bradford-based motor group JCT600, Skipton headquartered civil engineers J N Bentley, Bingley-based global publisher Emerald Group, plus shoe manufacturers Pavers and temperature-controlled distribution specialists Reed Boardall, both of which have headquarters in York.

Photo shows: James Fawcett, partner and head of corporate, Gordons; John Tordoff, chief executive of JCT 600; Mark Roberts, former chief executive of Andrew Page, Jonathan Turner, chief executive of the Bayford Group; Simon Pilling, partner, Gordons; John Ridings, a non-executive director at NG Bailey; and Martin Hasyn, partner, Gordons.

This was posted in Bdaily's Members' News section by Clare Burnett .