Tom Wolf, Chairman and CEO of the Wolf Organization, a six generation family-owned building materials business based in
He suggested that a family business needs to ask these seven central questions:
1. How do the goals of business ownership and succession fit with other family priorities and goals?
2. What are the current owners’ primary objectives for the family business?
3. How will the current owners objectively qualify prospective successors in the ownership transition process?
4. Who leads the succession process if the acquirers are family members?
5. If the acquirers are family members, who apportions roles, responsibilities, and titles among them?
6. How will communications within the family be managed?
7. How – and over what time frame – will family members be apprised of the rules governing the transfer of business ownership?
He then shared the seven rules for succession:
1. Separate family from business. Family harmony comes first.
2. Maximize shareholder value.
3. Make sure acquirers have ability to complete the transaction.
4. If transfer within the family, the acquiring generation must initiate the process.
5. The acquiring generation will apportion responsibilities and ownership percentages among themselves.
6. All family members will be kept informed of progress on a transaction.
7. Rules will be laid out well in advance of a succession event.
Overall an excellent presentation from this former Pennsylvania Secretary of Revenue. Mr. Wolf feels very strongly that you need to think in terms of a business owned by a family rather than a family owned business.
.jpg)
.jpg){kind=logo}
my boss's step daughter recently started with our company to help as we expand into the Eastern markets... the cool part? she's starting as an administrative assistant. Not CEO Jr, not COO or some other made-up title, assistant.
That's the way to do that and frankly there is much more mutual respect as a result.
Great useful content as always, Scott. You're on fire!!
Posted by: Adrienne | September 22, 2009 at 03:18 PM
Entitlement issues are quite natural in a family business.The family business is a huge hard work of generations and when it is to be placed in the hands of children who are still inexperienced, is a giant decision.
most people start their own business mainly to pass it on to their future generations so that security is ensured.
Posted by: Jason | September 23, 2009 at 08:35 AM