Every family business wants to succeed with harmonious working and profits at the end of the day. Because families are by nature sources for disagreements, it is often difficult to keep a happy atmosphere. Planning will go a long way towards maintaining profits and peace.
When a family business operates for many years with a single person in charge, there will eventually be a change in leadership. Options are to sell the business to someone not connected to the family or transfer it to a family member. The goal in case of a family transfer is for the business to move forward and remain profitable. However, family transfers are traditionally sticky situations and it is a delicate process.
A Famous Family Business
One famous family that did’t handle control or transfers of control well were the Guccis. They made leather goods in Italy in the 15th century and the modern Gucci Company was formed in Florence in 1906. For the next 80 years, the family fought like cats and dogs and the empire was eventually sold in 1988.
The time to plan for a transfer of ownership from parent to child or children is now. Today, a son committed to take over the family lumber company or meat market might go to college and become a rigid conservationist and a vegetarian. What then? Another family member might be completely indifferent to the family business but when a parent passes away they suddenly wake up and smell the money.
Smart families avoid these types of situations when they hire an experienced business planner. A solid plan puts everyone in the loop on what direction the company is headed. Working through a family transfer should be handled by someone with experience.
Experienced Family Business Consultant
Bryan Parker has many years of experience helping businesses plan for successful transfers. Please see his credentials here, and call 612-294-8730 to arrange a consultation.