How well do you know and understand your family’s business culture?
In this podcast Vincent talks about how important it is to work with families to understand the business culture at work in their companies. Many owners may be better off financially transitioning their companies to children or other family members than they would trying to sell them on the open market. They need the equity in order to retire and maintain their lifestyles, and mentoring and transitioning to family can be better for everyone involved.
When done right, transitioning to family members allows the entire family to create lasting legacies that will continue for as long as they want them to. That legacy will make a difference to family members, company employees, and even the larger community. It matters.
Because family business culture has many different facets, it’s crucial to begin having these discussions early on, first individually and then in groups. Time passes quickly, and the younger generations may not be prepared for a transition. Talking to them and getting their perspectives will produce ideas and strategies for making the business work better now and in the future. A rule of thumb here is: Unspoken assumptions kill transitions. We cannot emphasize enough how crucial communication and understanding are for the exit planning process.