Earlier this year, the world watched with interest as the Murdoch family’s real-life Succession drama came to a close.

Media mogul Rupert Murdoch’s children – eyeing an empire estimated to be worth more than US$20 billion (A$30 billion) and control of the Fox Corporation and News Corporation – had disputed a change to their trust that would put control squarely in the hands of only one of his heirs, Lachlan.

A settlement was reached in September, giving Lachlan control and paying three of his siblings to exit.

But the very public and bitter battle was a classic example of the factors at play in succession planning for any family business. In addition to the business implications, it’s often fraught with emotion and power struggles.

For a country such as Australia, which is heavily reliant on family firms, these tensions matter far beyond the headlines. Understanding why succession is difficult – and how to get it right – is essential.

Family-owned businesses are a crucial part of Australia’s economy. Small and medium-sized firms account for about 99% of all businesses, with about 70% being family-owned.

Surviving over time can be challenging. The “30-13-3” statistic (30% of firms transition to the second........

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