Family Business Roundtable Meeting Recap: July 27th, 2016August 18, 2016
All too often family businesses are simply on autopilot with little thought given to transition or succession planning. The importance of careful planning cannot be underestimated, along with open and honest conversations between all equity and non-equity stakeholders.
The Curchin Family Business Roundtable met again on July 27th to discuss a fictitious family business situation, where it was evident that there were missteps along the way with business management, legal advice and family business succession planning. Even though the model being discussed was fictitious, the issues raised are common to many family businesses.
The parents/owners hired good people, but did not have management procedures in place that others could rely upon if needed. When the children were brought into the business, they were not given the proper structure and tools to succeed. When obtaining legal advice on transferring business ownership, they only consulted the longtime family lawyer instead of exploring multiple opinions to see what would work best for their situation. Lastly, the children had communication and relationship struggles that were not openly dealt with and negatively impacted the way they ran their business.
Some suggestions that came up in the group’s discussions were:
- Have the owners shadow each other for a few days of work. This will work to build understanding and empathy for one another.
- Hire a business consultant to evaluate and set up operational structure. Meet regularly with owners.
- Owners to meet on a recurring schedule to discuss business operations. Both a business consultant and relationship consultant should be present for these meetings to improve communication between owners.
Family Businesses often need specialized advice and planning to allow for continued growth and success of the business. The Curchin Group has extensive experience in family business advisory and has certified consultants. Please contact us at 732-747-0500 to schedule your consultation.