Family Business Themes

In our over 25 years of experience we have learned that, since every family is different, every family business is unique. Consequently, we approach each consultation with a "clean slate" and custom design each consultation based on the initial information gathered in the engagement process.                                 

While no two consultations are the same, there are some common themes that present themselves in virtually every situation:

• Leadership and Management Transition. In a non-family business, decisions regarding leadership and management of the enterprise are generally determined by considerations of competence, commitment and character. In a family owned business, these objective criteria are often overshadowed by issues of blood relationship, birth order and gender. In addition, the senior generation's readiness to begin the leadership transition process may create stress between the generations.

• Ownership Transition/Estate Planning. In a purely family setting, treating all offspring equally is the parents' usual way of demonstrating that they have no favorites. In a family business setting, however, the task is more complex. Deciding whether "equal" is "fair" is a daunting task when not all of the offspring work in the business, and when those who work in the business may have different skills and make different levels of contribution to business success. Since in most cases the value of the business represents the bulk of the parents' net worth, it can be a difficult challenge to balance the family estate planning goals with what is best for the future of the business.

• Working Relationships. Every nuclear family has an established pattern of family interaction, both between the generations and within each generation. When family members work together, it is unrealistic to expect that those relationship patterns will be checked at the door. The importing of those relationships into the business is not only potentially disconcerting for family members, but is also troubling to key non-family employees who often see themselves as forced to "tiptoe" around those issues in a manner that is not helpful to the business.