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This book is about the sustainability of family business in the hands of the next-generation family business entrepreneurs. It was written with those NextGen in mind:
ā You are the future.
ā Dream big, be bold, and never fear.
ā Also, be respectful of your elders, love your neighbor, stay true to
yourselves, work relentlessly, and always strive for excellence.
No one can construct for you the bridge upon which precisely you must cross the stream of life, no one but you yourself alone.
āFriedrich Nietzsche
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Abstract
This book is designed to be a guide. It seeks to demystify the journey leading to preserving family legacy.
It is based on the fact that a family business is a partnership among its members, and that the most successful family business succession plan is the one devised by the family itself.
In this book, the author shares his unique experience working with hundreds of business families and next-generation family business entrepreneurs from across the world.
His 7-Step Methodologyā¢ offers an innovative and a systemic approach to family business succession planning and related conflict management. It focuses on the importance of maintaining an open dialogue among family members, and it paves the way to a structured conversation among those interested in achieving an orderly transfer of wealth from one generation to another.
This book further discusses the elements that traditionally cause tensions among partners who happen to be family members, and offers solutions that have been tried and tested over two decades and that are based on real-life examples and success stories.
This book is addressed to families in business looking to start a succession planning conversation, and to family business advisors invited to facilitate such a conversation.
Disclaimer: The opinions expressed in this book are those of the author. They do not purport to represent the views of any firm, organization, or institution the author is with today, or was associated with in the past, or of any of their members. Furthermore, none of the opinions expressed herein are intended to constitute, directly or indirectly, a legal opinion, and in no circumstance should they be viewed as such. The reader is invited to obtain independent legal advice, as they see fit. In Part 2 of this book, the author shares with the reader samples of provisions of family charters. These provisions are the work of the author. Many, however, are inspired from sample contracts and agreements the author has used throughout his career or has had access to over the years. As is the case in the legal industry, the authors of the original work are usually unknown. Sample contracts very quickly fall into the public domain.
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Contents
Preamble
Acknowledgements
Introduction
Part 1: Family Conversations Matter
Chapter I: Family Business Succession Planning: The Journey
Chapter
II: Succession Plan Conditions of Success: The Hard Work
Chapter III: The Glue That Ensures the Stability, the Security, and the Sustainability of the Family Business: Communication
Part 2: Fundamentals of a Family Charter
Chapter I: Concepts Underpinning a Family Charter
Chapter II: Typical Table of Contents
Chapter III: Select Provisions of a Family CharterāAnnotated
Conclusion
About the Author
Index
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Preamble
For many, the concept of a family business is an enigma. For others, it is nothing but a statistic, a phenomenon destined for failure by the third generation.
This may be attributed to the following:
- 1. Within family businesses, like all aspects of family life, things tend to be conducted behind closed doors. Like an iceberg, only the tiny tip is exposed and open to scrutiny. What you see is often a āhome-bakedā report devoid of the expertise required of otherwise managed companies or firms.
- 2. Only a handful of professionals have actually worked directly with families in business, as entry into the inner circle is by invitation only. Very few have been extended such a privilege, as outside intrusion is deemed to be unnecessary and unwelcome.
I am, however, one of those fortunate enough to have been afforded the opportunity.
Today, while I agree that family businesses are facing unprecedented challenges, I find the popular adage āclogs to clogs in three generationsā to be outdated (it was first mooted over three centuries ago). Not only is it outdated, it is also incredibly disrespectful to the next generation of family busines...
