Stan Mason, owner and executive chairman of Dublin-based Mason Technology, has done what few owner-managers do and has handed the running of his business over to someone else.

Mason (63) knows that, before long, he either won't be in a position to run the business or he may want to enjoy his retirement. In his case, there was no other family member to take on the business, so he appointed an outsider as managing director.

"I have three daughters, but none of them stepped forward to take over," says Mason, whose family business has been in existence for more than 200 years. He admits it was a difficult decision but one that will benefit his business in the long run.

According to Dr Lawrence Dooley, who runs a diploma in family business management at University College Cork, succession is one of the main challenges facing family business in Ireland.

About 70 per cent of family businesses fail within five years of the owner-manager handing over the reins, he says.

He adds that, while it is not solely an Irish phenomenon, the high number of family business in Ireland makes it a pressing issue here.

A survey published this week by PricewaterhouseCoopers showed that succession planning and conflict are the two of the largest threats facing Irish family businesses. Of those questioned, 50 per cent said they were anticipating a change in ownership in the next five years, and only half of those believed ownership would pass to the next generation, says Paul Hennessy, a partner at the firm.

He also said the trend in Ireland seemed to be to sell the company to a management team, implying that many owner-managers have confidence in the people running their businesses.

"Succession is the one thing that's unique to a family business," says Joan Mulvihill, manager at BDO Simpson Xavier's centre for family business. According to Mulvihill, many owner-managers don't plan for the future and are forced to work long past their desired retirement age or hand the business over in a hurry to someone who isn't suited to the challenge.

Peter Caviston is lucky. He took over the family business, Cavistons fish shop and seafood restaurant in Glasthule, Dún Laoghaire, from his father in the 1960s and is content in the knowledge that two of his three children are already involved in the business and that the third is likely to follow in their footsteps.

Caviston believes that it is good to be part of a family business. "It's to do with commitment - there's one of those feelings that if you work for yourself, you don't look at the clock."

However, he also admits that part of the increased commitment is sometimes forced upon you because, as was the case for him, the family often lives on the premises and finds it harder to switch off from work.

"You have no problem handing over the baton when you see they are willing to make a go of it," says Caviston. "It's a good thing for someone else to come in and take the business to a new level."

However, he acknowledges things aren't always that easy. "There's nothing worse than forcing something onto someone who isn't interested," he says.

Anthony Carey, head of accountants Cooney Carey, believes owner-managers need to assess the skills required to run a business, but that people often seek the easy option by passing it onto a family member who would have been refused the position had they applied for the job as an outsider.

He also points out it is important to seek consensus from the family.

Cooney Carey offers consultations to help set up succession plans and in some cases recommends the creation of a legally binding agreement to avoid misunderstandings at a later date.

"We have seen many instances over the last number of years where families appear in court fighting over small misunderstandings, which can become irrational and personal," says Carey.

However, Mulvihill says that she's seeing an increased awareness of the problems and people are taking a proactive approach.

"These issues are not new," she says. "It's just that the stakes are much higher because of the wealth created in many firms."

Still, there's one thing Mason and Caviston agree on, and that's that the key to longevity of a family business is change - and what better to bring about change in a business than a change in its management?