This article originally published in Corp! Magazine, 2/22/2018 It was a crisis! The holidays were in full bloom when the family received the news of a potentially fatal prognosis due to a rare disease. Although the patriarch looked like the picture of health at 68, he had been having some unusual symptoms that sent him […]
There is no relationship in life longer than that of siblings. And, like today’s families, sibships come in all shapes and sizes. The classic nuclear family has diminished in the past decades, due to divorce, remarriage and parenting out of wedlock. So now we have more half-sibs, step-sibs and sibs by adoption. In addition, second and third marriages have created large gaps in sibling ages.
How does the fact that siblings share common parents in some form affect a family business? Here are some suggestions to make sibling management teams effective.
Let’s start by defining a family business. The classic definition is a business where a single-family lineage has ownership control, is active in management and involves multiple generations. But some of those boundaries have become blurred. What about blended families? How about publicly traded companies? Would siblings who used “family money” for startup capital fit?
During a prospective client meeting with a family business beginning to transition to third generation, it became clear that there were decades of issues to be addressed. Dad’s estate plan had considered the inactivity of his one daughter in the family business and she inherited non-business assets equal to the value of 25 percent of […]
Here’s the thing… good planning avoids conflict. But, good planning is much more than asset allocation. Advisors implore their clients to plan for the future. They often use disturbing techniques like horror stories of deplorable outcomes due to a lack of planning. Usually the disturbing track is about a loss of money either to the […]
Every leader surrounds themselves with advisors. We have all had mentors throughout our lives whose lessons have given us our ethics, values and acumen. Whether it be a parent, teacher, clergy or Dutch Uncle, our mentors have shaped our abilities to think, reason and solve. If we are fortunate enough to have some of those […]
Please join us as we honor this year’s MICHIGAN’S ECONOMIC BRIGHT SPOTS Corp! Magazine is once again looking for Michigan’s Economic Bright Spots. These companies have continued to grow in economic growth, expansion, and are hiring Michigan’s brightest talent. Companies are able to nominate year after year if they have continued to grow. Deadline for […]
The ‘business is business’ mindset can be a problem in a family enterprise. The family dynamics factor in a family business is strength and a weakness, an opportunity and a threat. Six best practices are proposed.
Conflict in a family business is normal. But it needs to be addressed and managed before it is allowed to dominate poor governance and ultimately destroy the business. The conflict paradigm is one protocol that works well with many work groups.
The accounting function of a business should measure more than profit and equity once a year. It should provide a service for management to help determine how money was made and how equity can be increased.