How Family Dynamics Can Impact A Business Transition

  • Manufacturing
  • 1/5/2022
Businesswoman thinking about the future

A family-owned business faces a unique set of challenges, especially when the family is contemplating a transition of that business. There are many tools that CLA c...

Families are awesome! We love working with our families and our family-owned businesses. However, a family-owned business faces a unique set of challenges, especially when the family is contemplating a transition of that business. There are many tools that CLA can use to help a family navigate their family dynamics, ensuring the business transition is a time of celebration for the entire family.

Typical Family Challenges

There are 4 typical challenges that a family faces when it owns a business

  • Roles & Responsibilities – There can be a lack of clarity in the roles and responsibilities of individual family members
  • Communication – Even though a family may get together often socially, they might be reluctant to communicate with each other regarding difficult business issues
  • Decision making – Does everyone agree on who should be involved in what decisions?
  • Emotion – There is so much emotion in a family-owned business, which only increases through a transition process

Please click here to watch Samantha Metcalf and Lisa Horn discuss these challenges and the tools that can be used to mitigate these challenges. Remember, planning in advance of a transition helps control the emotion and the outcome.

This blog contains general information and does not constitute the rendering of legal, accounting, investment, tax, or other professional services. Consult with your advisors regarding the applicability of this content to your specific circumstances.

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