Case Study – Family Business Succession

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Service: Family Business Succession

Client: Specialty Contractor

Situation:

The company was a leading specialty contractor in the state of Hawaii, doing business on each of its islands. The Founder had grown the company, having been given the majority of its shares from his father. He was now ready to retire and wanted to transfer the company to his son (Successor), who had been working there for several years.

In addition to the Founder, the company was partially owned ...

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Family Business Succession: Three Basic Steps

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When a family business passes to the next generation it is likely going to fail. At least that’s what the statistics indicate. To beat the odds, planning and forethought are needed to create a clearly defined family business succession plan. One that will succeed.

Without this, the momentum of the family business can be lost, causing it to fail despite its recent or current success. Though transferring the ownership of a family business to a new generation of successors can be ...

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Seven Facts About Family Business Succession

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It is hard to transfer a Family Owned Business. In fact, the difficulties and awkwardness of Family Business Succession can be so overwhelming as to create a gap between Founders (or Leaders) and Successors. Here are seven slides showing facts about Family Business Succession every owner and successor need to understand. 
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Family Business Succession: Hidden Costs

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The Cost of Doing Nothing

Putting the Business of Family at Risk

It is not unusual to for the owner of a family owned business to have a hard time with succession planning. In fact, are usually started then tabled due to the many issues that suddenly come to the front. When this happens, the most common response is “denial.” Sadly, substantive succession planning may be put on hold until some sort of crisis – either in the owner’s family ...

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Reducing the Risk of an Employee Buyout

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Here’s one of the “dirty little secrets” of selling a business: In most cases the efforts will fail.

When teaching on business succession I introduce the “35-20-7 Rule”: only 35% of all companies reviewed by mergers and acquisition professionals are viable for sale, only 20% of all companies listed will actually sell, and as a result of these only 7% of all businesses will actually be sold as an ongoing venture.

Others have called me an optimist.

Why is this important? Because more ...

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Start Here: The First Step in the Business Succession Journey – What Do You Want … Really?

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Business succession is a journey that begins with a clear goal. 

I “shred.” Not well. Not a lot. And if I am honest I have to admit that compared to most of the kids on the bunny-hill I look sort of like a clumsy yeti on skis.

Still, after a twenty-year gap I agreed to go with my son to Schweitzer Mountain in North Idaho and re-learn the art of skiing.
I signed up for a private lesson with Kurt ...

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Finishing or Finishing Well? – Leadership and Business Value

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For several years we’ve worked closely with owners as they put together their business transition plans. During this time we’ve observed some interesting – and consistent – trends, most of which have been substantiated by a survey performed by Harris Interactive.

Observation One:

Many owners are not ready to “slow down.” In fact, we know several who obtained an equity position in a new business venture after ...

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