Family Business Transfers
How to Determine When it is Appropriate to Bring in a Family Business Consultant
In the last issue of The Exit Planning Navigator® (contact Christy Viviano, firstname.lastname@example.org for issue 102), we introduced you to what Family Business Consultants are and what role they play in dealing with the emotional and behavioral issues associated with family business transfers. We also looked at how the role of the Family Business Consultant is like that of the Panama Canal pilot captain. Your business advisors help you navigate the vast ocean of topics such as estate, wealth, and business planning opportunities. When it comes time to go through the tough areas such as the family dynamics (emotional and behavioral issues) that inevitably arise when any type of change threatens to occur (leadership, control, succession, wealth transfer, etc.), family business consultants help you, your family and your advisory team navigate the nuances of the special passage way, rather than suffer through the otherwise long tumultuous journey around the problem.
If you are transferring your business to your children and you and your advisory team have determined that the family business issues likely can be resolved by communicating a clear exit plan –then you may not need to enlist the expertise of a Family Business Consultant. However, if the family-based issues and divides are too wide, and considerable time and energy needs to be devoted to working on family issues as they relate to your exit plan, then a Family Business Consultant –properly trained and experienced in facilitation and dispute resolution –should be used to bring your family together and remove the road blocks so that the exit planning process can move forward.
Some of the warning signs and indicators that you might need to involve a Family Business Consultant during the Exit Planning Process are as follows:
If you recognize one or some of these indicators, it might be advantageous to enlist the expertise of a Family Business Consultant. These valuable third parties can help streamline the need for dealing with the emotional and behavioral issues associated with family business transfers.
Subsequent issues of The Exit Planning Navigator® discuss all aspects of Exit Planning. If you have questions, please contact Kevin Short, Managing Director (email@example.com).