A recent study by McKinsey on family business successions has revealed a surprising finding: the biggest problem in these transitions is not the incoming heir, but rather the outgoing CEO. The research, which analyzed 200 family business successions across 50 countries, found that these businesses tend to underperform for five years after a leadership transition. This decline in performance is often attributed to the outgoing CEO's inability to let go of control and adapt to the changing dynamics of the business. The study suggests that family business owners should focus on preparing the outgoing CEO for a smooth transition, rather than solely focusing on grooming the next generation of leaders.

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