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Family businesses are often complicated for one reason:
One family member adds a lot more value than everyone else.
Said person refuses to do it forever, others become entitled, business falls apart and relationships crash.
A very tricky situation for a lot of folks.
One family member adds a lot more value than everyone else.
Said person refuses to do it forever, others become entitled, business falls apart and relationships crash.
A very tricky situation for a lot of folks.
What ends up happening:
#1 Competent member buys out others at unfair multiple, works for years to pay off debt
#2 Biz has to be sold
#3 Resentment explodes, family fued kills business with lawsuits
#4 Biz dies as soon as patriarch retires & it can’t be sold
#1 Competent member buys out others at unfair multiple, works for years to pay off debt
#2 Biz has to be sold
#3 Resentment explodes, family fued kills business with lawsuits
#4 Biz dies as soon as patriarch retires & it can’t be sold
The fascinating thing...
The resentment and lack of planning can go on for YEARS.
With no communication or talk of the future.
With one person devoting entire life to keeping it alive even though they have no way of owning all of it, ever.
The resentment and lack of planning can go on for YEARS.
With no communication or talk of the future.
With one person devoting entire life to keeping it alive even though they have no way of owning all of it, ever.
It is the patriarchs job to plan and manage this.
Who owns what, who gets what, who’s job is what and how much it pays.
Most fail because it’s uncomfortable and the incompetent people are ALWAYS pissed.
Money can CRUSH families and turn them into disfunctional messed.
Who owns what, who gets what, who’s job is what and how much it pays.
Most fail because it’s uncomfortable and the incompetent people are ALWAYS pissed.
Money can CRUSH families and turn them into disfunctional messed.
