Guiding Family Businesses Through Generational Change: Insights from KPMG’s Creagh Sudding

Family-owned businesses are the backbone of many economies, particularly in South Africa, where multigenerational enterprises often play a central role in employment, innovation, and community development. But as these businesses mature, they face a unique set of challenges—especially when it comes to succession planning, tax implications, and governance.

In a recent conversation at the KZN Top Business Forum, Creagh Sudding, Associate Director at KPMG South Africa and a specialist in Family Business services, shared his perspective on how families can successfully navigate the complexities of transitioning leadership and ownership to the next generation.

The High Stakes of Succession

Sudding emphasizes a sobering reality: poor planning for business succession can be costly—both financially and emotionally. In South Africa, the net tax cost associated with transferring a business to the next generation can reach 35%–37%. Without a proactive tax strategy, many families are forced to either sell shares or draw from essential working capital to meet obligations, potentially putting the future of the business at risk.

“What often happens is that the intention is to keep the business in the family, but because there hasn’t been proper planning, families end up having to sell equity just to pay the tax bill,” Sudding notes.

A Holistic Approach to Family Governance

One of the key themes in Sudding’s approach is aligning family values with business governance. He advocates for the implementation of clear frameworks—such as a Family Constitution or Governance Charter—that help define roles, responsibilities, and expectations across generations.

These structures do more than mitigate risk; they promote trust, cohesion, and continuity. By giving younger generations a seat at the table early on, families can cultivate leaders who are both technically prepared and emotionally invested in the future of the enterprise.

The Value of Communication and Collaboration

Sudding also highlights the importance of open, structured communication between family members. Sensitive topics like wealth, control, and succession are often avoided due to fear of conflict or discomfort. However, avoiding these conversations can lead to even more tension later on.

By engaging in guided discussions—often with the support of external advisors—families can surface concerns early, identify shared values, and begin crafting a transition plan that reflects both legacy and future vision.

Preparing for a Sustainable Legacy

KPMG’s Private Enterprise division, under Sudding’s leadership in Southern Africa, provides integrated support for family-owned businesses—combining international tax expertise with family governance strategies to ensure a seamless, purpose-driven transition.

The goal is not just to protect financial assets but to preserve a family’s legacy, ethos, and unity. With the right structures in place, families can build resilience, reduce conflict, and unlock long-term growth across generations.

Key Takeaways for Family Businesses:

• Start early: The earlier succession planning begins, the more options are available for tax efficiency and smooth leadership transition.

• Establish a family governance framework: A formal structure helps avoid ambiguity and fosters transparency.

• Prioritise communication: Honest and regular dialogue is critical for building trust and shared direction.

• Seek professional guidance: The intersection of tax, law, and family dynamics is complex—expert advisors can simplify decision-making and ensure compliance.

  
  

Looking Ahead

As family businesses across KwaZulu-Natal and beyond continue to grow, KPMG remains committed to supporting them through every stage of their journey. With professionals like Creagh Sudding at the helm, families can access the tools, insights, and strategic guidance needed to lead with clarity and confidence into the next generation.

For more insights or to begin your own family business planning journey, connect with the KPMG Private Enterprise team.

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KPMG The Family Business Conference - Creagh Sudding