Succession & Family Business Transition

  • Public companies out of necessity and the expectations of their Board of Directors, are often adept in making sure a plan is in place before the need arises.
  • Family businesses, on the other hand, succession is frequently avoided, forgotten or omitted as part planning.
  • Entrepreneurs/family business owners have difficulty at identifying leaderhip potential at all levels.
  1. Obstacles
    1. Objectivity is difficult in an environment of emotional ties, conflicts and family dynamics. These can and too often do cancel or blur rational assessment of people and business requirements.
    2. Especially in the case of male entrepreneurs, his spouse’s opinion can rule the day in favor of her beliefs about their children’s talents and interests.
    3. The father and or mother have difficulty in keeping their personal preferences and needs separate from accurately assessing their offspring.
    4. Objectivity is the key ingredient that is rarely accomplished without the help of an outside set of professional advisors.
    5. Since legal and financial advice is required, virtually all family businesses have those services on board.
    6. However, the third leg of outside expertise must come from experienced and gifted people advisors.