Recently ranked as the greatest street in Ireland and Great Britain, Cork's Oliver Plunkett St holds lessons for towns and villages across the country.

Ireland's next generation of family business owners should consider working in another company, and maybe even another field, before returning to the family brand. Each offspring, no matter how strong the bond with the family, should build on their formal education and test their skills in the open market, work for a new boss or two, and establish a threshold of responsibility to implement their own ideas.

Outside experience is healthy for individuals and the business. The specifics of the outside job are probably less important than the journey away from home. Of course, professional positions in sales, production, marketing, human resources, research or other operational fields can be very constructive. Young workers need to understand the value of uncertainty and meritocracy, both of which might be lacking when your surname is written on the company building.

If the new job is in the same industry, the future successor can develop his/her own personal network and learn crucial skills — maybe even gain first-hand knowledge of useful ideas from competitors.

A job outside the same industry as the family business can be equally useful, especially if the next genner has always wondered what life outside the family industry is like. An added bonus: young people get the chance to be young and possibly foolish away from the eyes and ears of their future colleagues or employees.

Most children share certain passions with their parents, but most have different interests, too. Much like a university experience, the next generation worker will benefit from being around those who share their interests and passions. They may even find someone of similar mind and talent to incorporate into the family business down the road.

The larger the family business, the more important it is for future leaders to have a sense of working for someone you aren't related to. No matter how objective and fair-minded the parent, a child won't get a true sense of that independence and perspective while shaded by the family umbrella.

In numerous surveys, Family Business Australia and KPMG have found that successful family businesses tend to have children who are more educated and worldly than the general population. "More than 75 per cent of respondents had completed some vocational or tertiary training after leaving school," one survey found. "These figures are significantly higher than those of the population at large."

One participant said that businesses don't just benefit in the long run when the next generation initially leaves the business. The short run benefits can be felt in the current staff. "It's also good for the other staff in the business, who can see a clear prerequisite for family members to join the business," said the unnamed participant. "In turn, it's better for the culture of the business."

There are obvious benefits whenever the next generation eventually return to the business. "If a role is created just for you," said another participant, "instead of a real business need, then it makes it more difficult to build respect with other staff."

Another study found "group participants agreed that entry rules regarding education and experience should be encouraged and even written up formally for future generations."

Stories of success

Ross Brown, third son of John Charles and Patricia Brown, has known the wine trade his entire life. His family business, Brown Brothers Winery, has been an institution in northeast Victoria since 1889. Ross served as CEO for ten years before moving to executive director in 2011, and he stresses the importance of long-term planning — for business and for family.

"In our business we plant a vine to make wine in five or six years' time," Ross said in a July 2011 interview, explaining why family members must work a minimum of four years at another organisation before moving returning to the Brown family business.

In a separate interview with Drinks Trade Insight, Ross reaffirmed his belief in the outside work requirement. "It has the potential to continue to bring outside skills and knowledge back into the business."

The Brown Brothers family formalised an outside work requirement into a non-negotiable clause, and it keeps their family values codified for each generation to share and keeps the next generation from becoming complacent.

Sheree Sullivan, director and manager of Udder Delights in South Australia, said outside work was critical for the business' early survival. Her father and mother, Trevor and Estelle Dunford, started the company in 1995 with just two goats. Sheree and her husband Saul bought 50 per cent of the company 10 years later and says her family's success can be traced to its "migrant model".

Everyone, including her parents, worked outside jobs when the business was getting off the ground. There, they learned "a unique and very diverse skill set," says Sheree, including business administration and equipment maintenance.

Source: http://www.theaustralian.com.au/business/business-spectator/why-the-next-generation-should-first-succeed-outside-the-family-business/news-story/edc68c531c0c6809db066ad2353d9379

1. Establish a fair process
2. Build in safety and predictability so individuals will know what to expect
3. Get buy-in from parties
4. Use it!

For some ultra-high-net-worth families, the idea of stewarding the family's wealth by committee was unheard of two generations ago when decisions were largely made by autocratic family elders.

Now, a new report, Family Decision-Making: North American Family Wealth, suggests that today's ultra-high-net-worth (UHNW) families (those whose wealth exceeds $25MM) are using increasingly democratic decision-making structures—and finding that this formality is actually a positive catalyst for family relationships.

This report from Morgan Stanley Private Wealth Management, in partnership with Campden Wealth Research, surveyed 59 individuals from UHNW families to examine how UHNW families make financial decisions as well as the effect these processes had on family relationships. Forty-four percent of respondents said decision-making about family wealth had a positive impact on their familial relationship. Only 16% said it had some negative impact and 3% said it had a strong negative impact.

A well-organized, democratic decision-making process, it seems, may actually help boost family harmony.

How Families Make Decisions

"We weren't set up for compromise. [For] my father's generation, the golden rule was 'He who makes the gold, rules,'" writes one third-generation member of an UHNW family. But when this survey respondent's parents died, chaos ruled. Some of the family wanted to keep the money together, but without a figurehead or a history of group decision-making, family members with "incredibly different goals" found themselves mired in conflict.

Eventually, with the help of a professional facilitator, the family set up an office that managed both collective and individual assets, and established a voting system. The family now reports they are generally able to come to consensus-driven decisions.

The report shows that many families are now addressing unique multigenerational challenges in new ways, including investment-policy and mission statements; organizing committees that meet regularly to make both family and financial decisions; consulting professional advisors; and sometimes hiring outside CEOs to run the family office.

An Evolution for Family Decision-Making

David Bokman, Head of Ultra-High Net Worth Resources for Morgan Stanley, has watched this evolution toward formalized decision-making with approval and says it's worth the effort to overcome any initial resistance from family members.

"Formality is often awkward to implement because family relationship issues are often unstated and difficult to acknowledge. Yet formality maximizes the opportunity for success by improving conversations both within the family and between the family and its financial advisors," says Bokman.

One of the most common ways families are formalizing decision-making is to create a family mission statement, which lays out goals and values. Two thirds of UHNW families either have a mission statement or plan to create one. Another popular avenue is an investment policy statement (IPS)—a document laying out parameters such as a family's investment goals and how much risk they are willing to accept. Just over half of families surveyed either have an IPS or plan to create one, and the majority (53%) consult an external advisor when they do so.

When it comes to decision-making structure, the family committee is popular, with nearly six in 10 families using such a group to make decisions about family governance. Family committees are also the most common way to plan philanthropy and family wealth education. The latter, Bokman says, is an area where many UHNW families need to make sure the next generation is ready to take up the mantle.

Family committees can also make financial decisions, such as determining asset allocation or investing in a specific opporunity, but those calls are more likely to be made by professional advisors or a CEO, who may or may not be a family member.

The Family Wealth Advisor Role

The report also found that the single biggest influence on an UHNW family's financial decision-making is the professional advisor. Nine out of 10 families said their Financial Advisor had significant influence in family wealth decisions.

Survey respondents reported that a professional financial advisor was used in 41% of cases for overall asset allocation, and a family advisor or family office executive in 38%. These same non-family members also helped make decisions about specific opportunities in 44% and 35% of cases respectively, and to divest in vehicles or companies 41% each of the time.

Recruiting an outsider to help steer the ship is wise since some UHNW families can fall victim to the same cognitive biases that plague other investors. For example, the study uncovered a common optimism bias, the feeling that one is at less risk of suffering bad outcomes than others. While nearly half of the respondents expect the overall investment climate and global economy to get worse in the year to come, eight out of 10 expected their own household portfolios to improve or stay the same.

Bokman expects this new report will help families and their advisors get the ball rolling on the two-way discussions necessary to preserve intergenerational wealth and harmony.

"Our hope is that the findings in the report provide perspective, contributing to family discussions on setting goals and creating strategies to achieve financial, social and philanthropic ambitions for ultra high net worth families."

 Need further advice on how to go about managing your Family Wealth, Contact us here at Family Business Ireland. 

Source:

http://www.morganstanley.com/ideas/family-wealth-planning

Ringing a family member or friend on board as a business partner may seem like a fine idea, but the relationship can prove tricky to navigate--or to end, if things don't go well. "It's easy to get into business, but it's hard to get out," says Wayne Rivers, president of the Family Business Institute, a consulting firm based in Raleigh, N.C.

That means you need to take a step back and think carefully before partnering with a friend or relative. Here are 10 key questions to consider:

Are we in it for the same reasons?
Be clear about your goals. Do you want to expand your business and eventually sell it, or build something your family can pass down? "The mistake is not being clear about what your intentions are," says David Ransburg, a consultant with The Family Business Consulting Group, Inc., based in Chicago. If you don't have the same goals for the business, you'll have a hard time making plans or coming to a consensus on big decisions.

What is this person bringing to the job?
Don't let your relationship color how qualified and well suited for the job your potential partner might be. Think about the credentials and level of commitment you would expect from anyone you were giving such a key role in the company. You may want to write a job description with qualification requirements and see how the experiences of a friend or family member measure up, Rivers says.

Should you offer an equity stake in the business?
You need to decide whether you want to offer your new partner an equity interest in the company, and if so, how much and how soon. Not only do you want to be sure a potential partner can add value to the business before sharing ownership, but you also should consider giving the person an interest in the business over a period of time, say five years, rather than all at once, says John Davis, faculty chair of the Families in Business Program at Harvard Business School. It can be easy to deal informally with family and friends, but you want to make the terms clear in a signed shareholder agreement.

What will happen when we can't agree?
Resolving conflicts with family and close friends can be particularly challenging because personal feelings can easily get mixed up with business decisions. "With friends and family... you might make more knee jerk reactions," says Ira Bryck, Director of the UMass Family Business Center in Amherst, Mass. "You can be your worst self where you need to be your best self." You will need to figure out a way to remain professional by taking personal feelings out of decision-making and focusing instead on objective measurements and standards.

How in sync is our risk tolerance?
Despite your personal connections, you and a family member or friend may feel very differently about taking risks. For example, an older sibling who saw his parents take many risks when starting the family business might be more willing to take risks himself than a younger sibling who got involved later when the company was more established, Bryck says. Determine how in sync you are on such vital decisions as launching new products or trying out new forms of advertising. While you can certainly disagree from time to time, you don't want to constantly butt heads.

What will each of our roles be?
In a 2010 study of 518 family-owned businesses, the most successful ones had made each person's role in the company clear upfront, says Tracy Shaw, assistant vice president of business market development at MassMutual Financial Group, which oversaw the "FamilyPreneurship" study. For Lidia and Uli Fluhme, married founders of Gran Fondo NY, which began running an annual 110-mile cycling event in New York in 2011, the division of labor has been clear from the get-go. While Lidia Fluhme takes care of logistical aspects of the event, her husband is responsible for interacting with cyclists and handling marketing and legal matters. "He's the visionary, and I'm the implementer of what happens," she says.

How will we keep our personal and professional lives separate?
When working with family or close friends, the boundaries between your personal and professional lives are bound to blur. But you can maintain some work-life balance if you establish a few rules. For example, you might agree not to discuss work during family meals or to talk about personal matters at work only in an emergency.

How will this person be evaluated?
Family and friends tend to sweep a lot of things under the rug in business rather than addressing them, Rivers says. But you need to hold one another accountable and figure out how you will evaluate each other's performance on a regular basis. If providing feedback, especially criticism, seems too difficult given your personal relationship, you can seek out a third party for the assessments, Rivers says.

If it doesn't work out, what do we do?
It isn't unusual to want to change your career, but when you're in business with a close friend or family member, you might feel you can't leave because it will hurt your personal relationship. Before asking a family member or friend to become your partner, consider what might happen if one or both of you wants out. How will you handle the exiting partner's shares? Who will take over the responsibilities of the departing partner? What will this do to your personal relationship?

What will our succession plan look like?
Even if you both plan to stick it out for the long haul, you're still going to have to think about your successors. Unfortunately, succession planning often goes unaddressed because it suggests mortality, illness or other unpleasant life events you'd rather not discuss. But failing to address succession planning "is like getting on a plane with a pilot who hasn't learned how to land the plane," Bryck says. "You really need to sit down and have this difficult discussion."

Source : https://www.entrepreneur.com/article/225613

PEOPLE WHO WANT to pass on the family business to their children are unfairly slugged with a higher tax rate if they wait until retirement.

The loophole means those that want to avoid a large bill are forced to either make an early decision – or have their families wait until they are dead, according to one of the country's leading tax advisers.

PwC director and senior tax manager Colm O'Callaghan told Fora his top advice to successful family business owners was to pass their enterprises on to their children before they hit the age of 66.

"Historically, if you were passing on a family business to the next generation, you could get a capital gains tax (CGT) transfer to the next generation and the next generation would get relief from capital acquisitions tax," he said.

"But if you're aged 66 or over, you only get the first €3 million CGT free (now), the remaining balance is taxed at the normal rate."

O'Callaghan said that there are a variety of reasons why someone may not not be willing or able to pass on their business before the age of 66.

"Most people still work well into their late 60s or early 70s," he said.

"(Another reason could be) the next generation aren't ready to take over the business or through the recession they weren't able to because banks wouldn't let them or it wasn't the right time. Businesses are now having to wait until the person dies."

He added: "Unless they pass the business at the age of 66, it'll be tax inefficient and there's no reason why that should be the case."

Tax Change

The tax system as detailed by O'Callaghan was introduced when the treatment of capital gains was tweaked in the 2012 budget.

Capital gains tax is a charge applied to the profit made from the disposal of any asset. It is currently set at a headline rate of 33% in Ireland. Previously, full relief was available to someone aged 55 or over who gifted their business to their child.

However, Budget 2012 introduced a clause where this relief only applied from 55 to the age of 66. Once someone is over that age, the relief has a cap of €3 million, after which the normal rate applies.

"Most people would say that a business worth more than €3 million is a huge value, but you'd be surprised," O'Callaghan said. "You think of something that might be built up over a few generations, or even one generation.

"If it's a relatively successful business employing 20 or 25 people, it could be worth €10 million. If you had a €10 million business and the next day you had a €2 million tax liability, any business would struggle and it may not make it worth their while passing it onto the next generation."

O'Callaghan said that although it was difficult to quantify the number of businesses affected, entrepreneurs who built up and sold off their firms were probably in the minority compared to those handing over their operations to the next generation.

"There are a huge amount of family businesses in Ireland," he said.

O'Callaghan said he was a "happy man" when he spoke to business owners before they hit 66 and the relief should be extended past the retirement age

Source: http://fora.ie/capital-gains-tax-business-2678272-Apr2016/

We see all kinds of office politics – the good, the bad, and the ugly – in family-owned businesses. Families can be intensely political organizations, and non-family executives must know how to play politics both in the business itself and in the dangerous borderland between the business and the family. After reviewing the work that our firm has done with more than 200 business families around the world, we've identified some winning political moves that non-family executives can make:

Play in your "room" only. We like to explain to client family and non-family members that family businesses are like a home: Different discussions should be held in different rooms. Non-family executives who survive and thrive are those who either know intuitively or learn through experience how to separate the business into the management room, the owners' room, the family room, and the room for the board of directors. Successful non-family leaders stick to the "management room." They understand that when it comes to the "family room," the family has all the power; it's never going to be a fair fight. Blood is usually thicker than water. Yet family squabbles do spill over into the management room, and non-family executives must be able to isolate the business from the family when family members can't see past their own internal squabbling.

Ironically, it often turns out to be harder for the manager to stay out of the family room than one might think. That's because many business families either deliberately or quite naively try to involve the non-family executive in family affairs. We worked with a client family whose patriarch was continuously trying to engage the very talented non-family CEO in a bitter family fight with his son. This was a losing proposition for the CEO who, to his credit, refused to take sides in family disputes. He was empathetic, but he firmly pushed back against being used as a pawn in a game that he could never win. He repeatedly told the patriarch, "That is a family room issue; please take it there." So far at least, this non-family executive is turning out to be very successful.

Be highly discreet and competent. Restricting your influence to the management room does not mean that you are powerless as a non-family executive. Far from it. Given your position in the company, you typically have access to an enormous amount of privileged information, and information is power. As we noted above, the problem for many non-family executives is not that family members try to keep vital information from you, but rather that you are deluged by potentially explosive information. Woe to the manager who cannot keep confidences! Lose the trust of family members and your career will tank no matter how good you may otherwise be at playing the game of office politics.

This is not to say that family members always keep non-family executives informed of important business decisions that are in the offing. They don't. But the best way to avoid being left out of critical conversations is to demonstrate your competence. We've seen this type of situation with another client family where major business decisions get made outside the office when the family gets together on Sunday afternoons. The non-family executives can't force the family to involve them in these extra-office discussions, but in this case at least, one financial analyst is so good that the family invites her to all of these meetings. She has demonstrated her talent, her dedication, her discretion, and her commitment. She works extremely hard and has been careful not to align herself with any one family member or branch. She knows how to be professional in a family environment, and the entire family has come to respect her.

Avoid proxy wars. Alignment with one family member or branch is dangerous because families can act out their rivalries by "taking out" a relative's favorite non-family executive. While proxy wars are hardly limited to family businesses, they can often be more intense in families due to volatile group dynamics. For example, we're currently working with a client family member who is very vocal about his intent to break up the team of employees that is fiercely devoted to his sister, with whom he has a particularly contentious relationship. Our advice to non-family executives faced with this dilemma: Never hitch your wagon to just one star. Aligning yourself with a particular sibling or branch is always risky.

Give credit and invoke the family's higher angels. In our experience, the non-family executives who survive the longest are those who know instinctively how to deflect credit from themselves to the family. While this is important for career success in all office environments, in family environments this tactic takes on far greater significance. Make a son look important in front of his father – a battle that child may have been waging all his life – and you will win the loyalty of that adult family member for life.

What's more, most family owners are intensely proud of their companies. When negative family politics break out, you can nudge the family members to remember their family's greatness. Do this with genuine respect for the family's legacy, and you can go a long way toward helping them bridge their immediate political differences.

Make use of impartial outsiders. Giving feedback to executives about their performance can be tricky in a family business, where the sibling or cousin that you are evaluating may someday be the boss. Your instinct may be to step back and tell the truth, but to tell it "slant." And, indeed, caution is the appropriate response. The fact is that you must deal with the reality of the power dynamics at play. Look for opportunities to make your feedback truly independent of you, and truly confidential. Encourage your business to conduct 360 reviews using an outside provider. Or find an honest broker – for example, a trusted, external board member – who can give constructive criticism without risking his or her career.

One of the most difficult political situations arises when a non-family employee has a genuine grievance against a family member who receives de facto protection because of the lack of any formal (or informal) channels for redressing the situation. Imagine for a moment what happens when a non-family employee with a complaint turns to the head of the business, who just happens to be head of the family and the father of the son who committed some egregious offense. This occurred at one client family where the son was making inappropriate sexual comments to several female employees. In this case, the power of the non-family executive to put an end to the situation was very limited; it took an outside advisor to step in, expose, and stop the harassment.

Know your genetic limits. Finally, to be successful in a family business, you must have a realistic sense of the destinations on your career path. Even the most masterful player of office politics is not going to get the top job if there is a family member in the leadership pipeline who is destined to assume the mantle of CEO. Don't take it personally; it's not about you. You are biologically disadvantaged and have to be savvy enough to recognize this fact. Always be thinking about the family tree and family dynamics when considering your own path up the career ladder.

In a family business, playing office politics successfully means having the humility — and the political shrewdness — to put the family first.

Source:

https://hbr.org/2015/01/surviving-in-a-family-business-when-youre-not-part-of-the-family

GETTING employment law wrong during the recruitment process can be an expensive game for any business.

For example, a successful claim under the legislation by a potential recruit can result in awards of up to €12,697.
But there are ways to avoid the hassle and cost.
The Employment Equality Acts 1998 to 2011 outlaws discrimination in recruitment and selection of potential employees and not just during employment.

Employers must not deny access to employment on the basis of age, race, nationality, civil status, family status, sexual orientation, gender, disability, religious belief and membership of the Traveller Community.
A successful claim under the legislation by a non-employee can result in awards up to €12,697.
And there have been a number of such cases.

For example, an employee was awarded €10,000 by the Equality Tribunal in compensation for being discriminated on the grounds of disability.

Use these tips to avoid the pitfalls:

* Ensure the job description and requirements are carefully drafted in any advertisement. They must not be discriminatory or make explicit or implicit reference to the age, gender or any other characteristics of the potential employee.

*If using an application form, a copy should be provided to all candidates. The form should only contain questions relating to the requirements of the position. Questions on marital status, number of children, date of birth, place of birth, medical history or any of the nine grounds listed in the legislation should not be included.

* During interviews, candidates should all be asked the same core questions, to ensure a consistent and fair approach.

* The selection decision and any supporting evidence should be documented, including notes from the interviews. This should include the reasons why the successful candidate was chosen.

* All documentation should be kept for a minimum of 12 months as a claim in certain circumstances can be brought up to 12 months after the date of the alleged discriminatory act.

* Under the Data Protection Acts 1988-2003 an unsuccessful candidate can obtain notes and data in relation to them and the recruitment process. These notes may assist in formulating a claim and therefore an employer should be careful when taking notes.Unsuccessful candidates should be advised they were not selected as soon as possible.

* In general, there is no restriction on employers viewing personal information publicly available online in respect of candidates. This information if relating to one of the protected categories under the equality legislation cannot be used as a basis to refuse to employ that candidate. The Data Protection Commissioner has advised that employers should notify candidates that they shall be screened at the recruitment stage, which may involve online searches of the applicant.

* In relation to pre-employment medical exams these should be limited with reference to the exact job description and should not stray into areas which are irrelevant for performing the job description.

Source: http://www.independent.ie/business/small-business/advice-centre/employment-law-how-to-avoid-expensive-legal-claims-when-recruiting-staff-30252563.html

The marriage didn't work out, but if you're in business with your spouse, figuring out what to do with that vital asset is tricky.

Divorce can be a messy situation for almost everyone involved — and adding a family business into the mix certainly doesn't make things any easier, especially when two co-owners part ways.

For obvious reasons, divorce isn't always top-of-mind for couples who go into business together. After all, when you're caught up in the excitement of launching your own venture and seeing your hard work come to life, the last thing you want to plan for is the possibility that it might come to an end. But part of starting and owning a successful business is planning for the unexpected, including the major personal and business-related changes that divorce can bring.

So how can you navigate the process and make it out the other end with your assets and financial standing intact? There are three methods of handling this situation, but each comes with its own pros and cons. Here's a quick breakdown:

Continue to own the business together.

For some people, the thought of co-owning a business with an ex-spouse may not be ideal. But for others, the arrangement can work. If you think that you and your ex-spouse can work well together and continue to run the business, even after the divorce is final, then this may be the best option for you.

There are a few pros to continuing to own the business together: for one, you both get to keep your interest in the business, which means neither you nor your spouse has to sell your respective portions. Another benefit to co-ownership is that there's no need for a valuation of the business, which can be an exceptionally expensive process, depending on the unique complexities of your business.

On the other hand, taking this route also means that you will need to keep in close contact with your ex-spouse to maintain a good working relationship and trust him or her to do what's best for the business. Co-ownership will not work if you can't maintain an amicable business relationship. If this is not a possibility for you, then you may consider the following options when deciding on the future of your business.

Buy out your ex-spouse's half of the business.

Your business is just another asset owned by both of you, so it's going to be treated the same way from a legal and financial perspective. If you're not going to continue sharing the business with your ex-spouse, then it needs to be divided for each of you to get your fair share.

To start, you'll need to hire a business appraiser to perform a valuation of your company. As mentioned earlier, this is a costly process, but you can help save money by hiring one appraiser to perform the valuation. That way, you can split the cost of the valuation with your spouse, rather than branching off and hiring separate appraisers to complete the process (which can double the price).

After the valuation is complete, you can either buy your ex-spouse's half of the business (or vice versa, depending on your unique situation), or you can use other assets for an even exchange. If both you and your ex-spouse want to stay involved in the business, this situation can be particularly difficult; however, if you are more invested in the business than your ex-spouse (or vice versa), it should be pretty easy for you to determine which of you will buy out the other. If you're the spouse who wants to keep the business, now it's all yours.

Unfortunately, keep in mind that you'll also need to accumulate the funds to purchase the other half from your ex, unless you're sacrificing another asset for the business. If you're the spouse who isn't interested in keeping the business, you now have that much more money (or assets) in your pocket, due to your ex-spouse's purchase.

Sell the business.

The final option is pretty straightforward: sell the business and split the profit with your ex-spouse. If you choose to go this route, then the two of you should still hire an appraiser to perform a valuation of your business so you can determine an appropriate selling price. Assuming that your business sells quickly, then you will both have money to do whatever you please — you can even use it to start your own business. Unfortunately, if your business is on the market longer than expected, then you're stuck working with your ex for a little more time.

No matter what path you choose when determining your business's future, it's crucial to make sure you hire a team of qualified professionals to help facilitate the process, including an attorney, a CPA and a financial advisor. No matter how well the proceedings go, the emotional and financial effects of divorce can be difficult to manage. By having a trusted team that's working in your best interest, you can move forward with your life and take on your next venture with confidence.

Source: http://www.forbes.com/sites/lawrencelight/2016/03/07/when-2-business-owners-divorce-what-to-do/#3e9f1e284c00

Mr Mark Green is a Business Consultant who has worked as a generational interpreter. below are his views on handing the business down to the next generation and how best to do it.

With five generations now together in the workforce, generational conflicts are changing the dynamics—and succession plans—of many family-run businesses.

This "generational stack-up" creates conflicting work styles and expectations that can make or break a family business, said Mark Green, author of Inside the Multi-Generational Family Business.

Close to 80 percent of U.S. businesses and 40 percent of Fortune 500 companies are family-owned, says Green, and they're common in every industry. "It's a huge part of who we are as a country," he said.

One of the biggest challenges in a family-run business is the continual change of roles as new generations join the mix.

In the past 50 years, the dynamics have become even more complex as family members live and work longer. In the past, family businesses were passed from one generation to another, says Green. "Now they're passed from one generation to many," he added. "The paradigm is shifting."

Many family businesses had to change their succession plans during the recession, said Green. In some cases, older generations returned to the business when retirement plans fell apart or to guide the company through a difficult time. In other cases, sons and daughters who chose different careers rejoined the family business when they were downsized or laid off, or because the business needed extra help.

As a result, Green's role as a family business consultant is often to be a generational interpreter. For example, he explains to sons that fathers expect them to be at their desks, the first to arrive and the last to leave. Then he explains to fathers that sons are now expected to attend Little League games and can work from mobile devices.

In addition, the older GI Generation (1901-1924), Silent Generation (1925-1942) and Baby Boomers all grew up before the Internet, while Generation X and Generation Y have been around technology their whole lives, says Green. That means even simple things like leaving voice mails versus texting can cause big communication issues.

For older family members who may lead a business for 25 years or longer, the role becomes that leader's whole identity, said Green. "It's not just a job, it's a lifestyle," he added. And conflicts arise when the next generation wants a turn to lead.

That's why family-run businesses may want to consider creating career tracks for family members, he said. Family firms also need to recognize the patterns and conflicts that exist between generations, as well as how each generation brings value to the table.

Family businesses may also want to consider building in time to teach younger family members what it means to be good owners before they leave home, and to create succession plans long before they're needed, Green said.

Even with the additional challenges, however, family-run businesses have a lot of benefits, said Green. They typically support their communities, provide jobs, and are stable, value-oriented, and successful. "It's a lot of work, but when it works it's a beautiful thing," he said.

Source: http://www.forbes.com/sites/northwesternmutual/2013/09/25/handing-it-down-the-changing-dynamics-of-family-businesses/#7489559667f6