The world of family businesses is one I am very used to. The bulk of our deals in the M&A space are typically either founder operated or long standing family businesses. Most of these companies have grown far beyond the original business and become a corporate entity in their own right, but that doesn’t make them any less a family company. When a family or an individual makes a decision to sell it is a huge step. You’ve likely grown this business through thick and thin with decades of memories and history under their belt, you need delicacy and care when you’re finally ready to push that button and striking the right chord between your passion and pragmatism is a tough balance for your chosen advisor
Preserving the Peculiar Legacy:
Imagine your family business as a centuries-old library, filled with anecdotes, successes, and the occasional eccentric relative’s portrait hanging crookedly on the wall. Naturally, the prospect of selling feels like tearing a chapter from the family chronicle. The desire to see this legacy preserved often clashes with the objective of finding the best value in the market.
Friends and Family Incorporated:
Staff members who’ve become as dear as kin present a unique conundrum. Your trusted finance wizard, once affectionately dubbed “Uncle Finance,” might need a diplomatic nudge when conversations transition from merger stats to last weekend’s cricket match. Balancing their welfare while striking a lucrative deal requires a delicate touch akin to managing your great-aunt’s hand-painted porcelain collection.
The Charming Curse of Passion:
The passionate commitment that built the business can simultaneously act as its staunchest defender and its harshest critic. Picture the founder as a proud parent, it’s easy for you to criticise your kids but the moment someone else does woe-betide them! Handling criticism during the rigorous sale process requires a blend of reassurance and strategic candour.
The Art of Keeping it All in the Family:
In the cocoon of family dynamics, we sometimes forget that under the veneer of laughter lies a tapestry of differing viewpoints. Uncle Moneybags may want a swift sale while Cousin Careful dreams of a higher valuation. These disagreements within the ownership require careful handling and a diplomatic light touch throughout a process
Guiding the Legacy, Gently:
In the world of finance, where numbers are king, handling these multifaceted familial intricacies requires more than a dash of tact. Much like selling the family home, a financial advisor must weave wisdom and insight to maximize the value of the business while ensuring everyone feels heard.
Whilst many family businesses run along the same lines as corporate entities with solid governance and a strong board of directors, to underestimate what the emotions and drivers of the family shareholder are is to miss the point entirely. Whilst some advisors dread dealing with these difficult challenges I’ve come to relish building relationships across these kind of businesses and genuinely enjoy guiding people through to a successful conclusion allowing families to enjoy the fruits of often decades of labour. There is no better feeling than successfully completing a complex transaction with a family who feel like the best outcome has been achieved both for them, their legacy and all the staff involved who have supported them over the years.