University of Hawai'i University Relations Media & Publications Honolulu, HI 96822	(808) 956-8856 Telephone (808) 956-3441 Facsimile ur@hawaii.edu E-Mail
Contact: Kim Fujiuchi, 956-5104	Air Date: June 24, 1998

Succession in a family business   There are many issues relating to family businesses but none is more important than succession, or planning the transfer of ownership and management of a family business. University of Hawaii Professor Emeritus of Marketing Ralph Hook says without succession planning, it will be difficult to maintain ownership and control throughout succeeding generations. In one situation, a successful business owner started his succession planning in his forties. It became more critical when he was diagnosed with cancer. His children were not ready to succeed him. But he developed a plan that would make it possible for them to have an opportunity, rather than an obligation, to go into the family business. Succession in ownership does not have to mean succession in management. Often it is necessary to bring in outside management- temporarily or permanently. In any case, planning is critical. This is the University Report, I'm Tracy Orillo-Donovan.

-UH-