We guide you through

generational transitions hard choices preparing the next generation conflict in your family business getting unstuck

“We’ve worked with more family business owners than probably anybody in the world, so we’ve seen a lot of what works and a lot of what doesn’t work.”

Ben Francois

Partner

In nearly every client relationship we’ve been involved with over the years, at some point a family member will quietly ask us “Are we the worst family you’ve ever worked with?” The answer is always no. But it’s a common feeling. So we try to normalize that feeling – making decisions together as a family is really hard and sometimes that process can bring out old hurts. That is challenging, but it’s also normal. Making good decisions together is hard work. But in our experience, totally worth the work to get there.

“In almost every client relationship I have been engaged in over the years, there comes a moment when a family member approaches me, asking, ‘Are we the worst family you have ever worked with?’ My response is consistent: ‘You are similar to every other business family we collaborate with. Achieving consensus on sound decisions is a challenging endeavor.”

Rob Lachenauer

Managing Partner & Co-Founder

Transitioning from one generation to the next in a family business is a challenging task, but if the family can mitigate the risks of doing it badly, it will make the eventual handoff much easier. Poor communication among family members is one of the main risks in a transition process. Lack of alignment can set a family up for conflict. Another one of the biggest risks is poor planning or failure to prepare for the inevitable. Having advised hundreds of business families, we know what to expect and we understand how to help families navigate those challenges and risks so they don’t adversely affect transitions.

“When you don’t have alignment, you’re setting yourself up for conflict.”

Omar Romman

Partner

If the next gen grows up with the notion that in their life’s success only looks like a role in the family business, their identity is going to entwine with the business completely. That’s not always a good thing, it can cause more problems than expected. Rather than only focusing on motivating the next generation to join the business, the current generation should prepare them to be able to work together to make whatever decisions will come their way. That, more than anything else, will set the next generation up for their own version of success – both personal and as a group.

“At the end of the day, it’s most important to prepare the next generation to address any challenge that comes their way. The current generation isn’t going to have all the answers because the next-gen is going to be faced with different questions and different landscapes. So it’s not about helping them get to the right answers, but rather help them figure out how to approach problems together.”

Judy Lin Walsh

Partner

It can be difficult to know when the next generation is ready to join the family business which is why we suggest looking at it from 3 different perspectives: the current generation, the next generation, and the shareholders. Parents may never really know if their child is ready to join the business, but if you can see from your child’s perspective that they are making the right decision for themselves, that should be an indication they are ready. From the next gen’s perspective, if they have answered appropriate questions about their motivations and goals for themselves about joining the business, that is another good indication. From the company or shareholders’ perspective, the right preparations and information must be shared about how it works for family members in the business.

“The truth is, as a parent, you probably never really know if your child’s ready to join the family business. It’s a difficult question, a complex question, and one that even the most experienced parents have a tough time dealing with. But if you move from a parent’s perspective to a child’s perspective, you can make sure they’re making the right decisions for themselves.”

Nick Di Loreto

Partner