Succession Planning Crucial for Family Businesses as Murdoch Deal Highlights Challenges
Rupert Murdoch and his children reached a deal in 2025 to end a years-long succession battle, emphasizing the critical need for thorough planning in family firms to avoid emotional and legal difficulties.
Walker’s Shortbread exemplifies a model addressing these challenges by employing a 'cousins consortium' approach. This encourages extended family participation and aims for consensus on leadership decisions. Their formal succession plan also brings in external experts and non-family directors to support governance. The company, generating revenues exceeding £200 million, has had Nicky Walker as managing director since 2022.
In contrast, Dr Bronner’s founder Emanuel Bronner did not establish formal succession documentation, prompting current leadership to actively involve the next generation, including indications that Eli Bronner may pursue the CEO role.
In Toronto, St James Town Steak and Chops is preparing the next generation by training Mark Michelin’s two sons, Noah and Alex, to lead. This approach stresses maintaining family involvement and preserving customer trust.
Surveys highlighted in the report reveal that more than four in ten business leaders have yet to identify successors despite planning to step down. A linked 2025 report warns that insufficient succession planning risks business closures, job losses, and wider economic uncertainty.
