In our experience, many business owners start exploring their options when they’re referred to a lawyer, investment banker or other subject-matter expert whose expertise typically lies in one specific area. That can create the classic “when you’re a hammer, everything looks like a nail” problem. And it can limit your options instead of expanding them.
Developing a sound exit strategy is even more complex in a family business: only about 30% of these companies survive to the next generation and only 13% live to 60 years.2 Consider these dilemmas:
A family business can be a tremendous source of pride and wealth. It can also create challenges you probably know well …
Family business challenges
Ongoing conflict over whether to re-invest in the company or pay out dividends to family members Other family members are naturally concerned about dilution of their ownership interest if you need outside funding or expertise Feelings of entitlement among the next generation (“They feel like they have a birthright to revenue,” one entrepreneur bluntly told us).
More family business challenges
High levels of underlying emotion and competition among family members – which often have nothing to do with the business itself! Is every family member in the right seat on the bus? And is their presence always in the best interest of the business? Limited growth opportunity for non-family members.
We can help you navigate a path to liquidity…
…that may work better for all than simply selling or transferring ownership to the next generation as the default option. For example, you – the owner or founder – may be able to generate the money you need to feel secure AND keep the business going strong for your children, employees and future generations.