Why is it that so few family businesses make it into future generations?
Often the earlier generation in a family business rides a wave of success and everything in the business and family runs smoothly. Like a sports team, when the team is in first place the clubhouse issues are smoothed over, but when the team falls into last place, frustration builds and negativity takes over the team. In an established family business, the issues develop when either the success of the business slows down or the next generation is entering the family business. Everything just gets more difficult towards the end of the first generation’s run.
There are three things that family businesses use to maintain success and smooth the transition into the next generation:
To Talk or not to Talk to a Potential Buyer?
by François M. de Visscher
Maybe you shouldn’t just say, “Sorry, not interested.” But you should take steps to control the process. A man we’ll call Harry Dobbs had given no thought to selling his family’s business. But recently he received a phone call from a lawyer who said he had a client interested in buying the company. Dobbs Hardware is a very successful distributor and Harry enjoys being its CEO. However, the call made him stop and think: “Maybe I shouldn’t just say, ‘Sorry, not interested.’ Maybe I should at least look at what this guy has in mind.” More…