You are the principal shareholder of the family business and receive a call on Thursday morning from your chief financial officer. A similar call was made to your banker. There is no cash for tomorrow’s payroll. Even though you have been a long time customer of the bank, it refuses to lend any more money…
Failure to address unresolved intra-family conflicts will affect performance of the family business. Likewise, crises within the business exacerbate intra-family disputes. Conflict in family business is heightened during times of economic challenge and transition. Typically, when a family company fails, external forces are not the main cause. Estate planning preferences, tax policy, lack of adequate…
Research about the survival rates of family businesses is extensive. Historic data indicate that fewer than 35% of the businesses pass to the second generation; fewer than 10% pass to the third generation. Very few survive into later generations as financial and talent requirements dilute the hold of the blood line. These statistics highlight the…
