How parallel governance can guide generational transition | EY - US

Jim Wood Photographic Portrait

1 minute read 25 Apr 2025

Related topics

Family enterprise

Private business

This webcast explores how parallel governance supports family businesses in preparing for generational transitions through clear, shared roles.

In brief

Key takeaways from the webcast include the following:

Parallel governance creates a clear distinction between family and business roles, reducing conflicts and promoting objective decision-making.
Implementing structured governance helps mitigate risks during generational transitions by clarifying roles and responsibilities.
Robust governance practices enhance resilience and adaptability, empowering family enterprises to navigate market changes effectively.

Parallel governance is crucial for family businesses, particularly during generational transitions, as it helps separate family dynamics from business management.

Family Enterprise Business Services

EY Family Enterprise Business Services is designed to help enterprising families grow larger, more valuable businesses that will last for generations. We can help you develop and implement a plan for growth, generational transition and shareholder liquidity.
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In this recent webcast led by Pat Soldano from Family Enterprise USA, EY panelists Jim Wood (Managing Director, Family Enterprise Business Services, Ernst & Young LLP) and Cooper Rentfro (Manager, Family Enterprise Business Services, Ernst & Young LLP) explore the significance of this governance model. The discussion emphasizes that structured governance and succession planning are vital for maintaining family ownership, focusing on sustainable growth and effective transition strategies.

With many family business CEOs lacking succession plans, addressing the impending succession crisis is essential. Implementing a well-defined governance framework fosters accountability and transparency while preparing future leaders. Overall, proactive governance development is critical for sustaining family legacies and driving successful transitions.

Summary

Family businesses face unique challenges when leadership shifts across generations. This webcast emphasized how strong governance structures can guide families through these transitions with clarity and confidence. It called for building future leadership capability and reinforcing accountability through robust, structured decision frameworks. By establishing governance early, families can ensure continuity, support sustainable growth and protect the legacy they’ve built.

About this article

Jim Wood Photographic Portrait

Family Enterprise Business Services

EY Family Enterprise Business Services is designed to help enterprising families grow larger, more valuable businesses that will last for generations. We can help you develop and implement a plan for growth, generational transition and shareholder liquidity.
Read more
Family Office Advisory Services

Family Office Advisory Services offer domestic and cross-border tax services to high net worth individuals and families.
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