Tag Archives: ownership

Power without Knowledge – An Unnecessary Burden

In my work with sibling or cousin shareholder groups, I often encounter unprepared, or “sudden” shareholders.  These individuals come into ownership of their family’s business as a result of a gift or the death of a parent with little to … Continue reading

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Siblings to Cousins: Ownership Goals for Growth, Risk, Profitability and Liquidity

In the transition from siblings to cousins, families are often called to define the ownership role for the very first time. In earlier stages, a relatively small family allows for more direct involvement of family owners in business operations and … Continue reading

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Legacy and Evolution

One of the key differentiators of family businesses is a committed ownership group who are proud of the legacy their family business represent.  Research shows that family businesses outperform non-family businesses, and this focus on the importance of legacy is … Continue reading

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What is Stewardship?

Stewardship is a term often used when describing the perspective of family business owners.  As many owners of family businesses seek to pass their business on to future generations, the term stewardship is an accurate one.  The dictionary definition of … Continue reading

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“Someday This Will Be Yours”

The ability to carry on a successful intergenerational transfer of ownership and leadership is one of the most important and difficult issues facing a family business. One metaphor for succession is the firefly. They flicker brightly for a period of … Continue reading

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Adding owners to the family business

At some point in their lives, many family businesses face a decision regarding whether to authorize and issue non-voting stock or not. This common strategy can be very helpful in accomplishing tax and estate planning objectives as well as adding … Continue reading

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Where do YOU draw the line?

Position #1:  Our family built this business and we take on all the downside investment risk.  As owners, we take many ownership perks (club memberships, cars, personal services performed by the business) so our owners appreciate some upside at very … Continue reading

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Creating Flexible Systems for Family Business Transitions

As my kids start the year at a new school after moving our family to a new city this summer, I find myself reflecting on transitions.  Family businesses are full of transitions – ownership transitions, leadership transitions and family transitions.  … Continue reading

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Stock Market Convulsions – Lessons for Families

Last week was a great lesson in the consequences of emotional reactivity to business information.  Monday’s news was gloomy – business conditions had eroded from earlier projections and the debt deal wasn’t enough.  The Dow was in a free fall … Continue reading

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Should family members not working in the business ever be owners?

Recently at a seminar a well-respected advisor proclaimed that any succession plan that allows stock to pass to those not working in the business is a bad succession plan.  For anyone who has experienced family dissension or destruction over conflict … Continue reading

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