Closely Held and Family Businesses
Closely held and family businesses need to deal with all of the usual day-to-day business challenges as well as the unique interpersonal relationships that can exist between business partners or family business members, and it is these interpersonal relationships that are the leading reason that over two thirds of all family businesses do not survive beyond the third generation. Disagreements about money, ineffective management resulting from unchecked nepotism and shareholder disagreement over succession planning between generations are just some of the major factors contributing to business failure.
Closely held and family businesses that survive for successive generations have developed formal systems to address conflict, quantify the succession planning process, define the structure of the company’s board, elect the CEO, integrate senior outside leadership, conduct strategic planning, determine compensation of active and inactive family members, define the criteria that determine which family members will and will not be permitted to work in the business and effectively communicate with all shareholders and stakeholders.
The family business consultants at Leathers Milligan have real world ownership and executive employment experience in large and small closely-held and family businesses and are prepared to assist with matters relating to family business management, small business consulting and business continuance plan training. We have first-hand knowledge of these unique challenges and can help your business successfully meet them. We can, for example, facilitate the creation or revision of the company’s mission and its governing family values, lead strategic planning sessions, define family roles and relationships, identify cultural patterns and values, implement conflict resolution systems, guide career development plans, define compensation and reward systems and help build effective boards of directors and family councils. Our goal is to help you successfully move through the issues facing you today while constructing the foundation that will solidify the business as your legacy, perpetuate your organizational or family values and provide for your family and beneficiaries throughout future generations.
We understand the special needs of closely held and family owned business, and have the experience and sensitivity to be a valuable resource in these unique environments.
Related article & video
“The Success Gene: Why some family businesses thrive year after year”