ABSTRACT
Transitioning a family business to the next generation often begins with naming a successor. This chapter investigates the factors that lead farm business owners to name a successor for the business. A probit regression is used to show how business, family, and owner characteristics affect the selection of a successor. We find that sufficient levels of capital, intentions to sell or give the business to family members, regular discussion of goals, estate planning, the senior generation feeling prepared to hand down the business, the number of generations in management of the business, and the owner's years of experience all have an effect on a family business naming a successor.
