A change in ownership of a family business is disruptive. Power dynamics shift; new ideas and approaches are introduced. This change isn’t necessarily bad. A change in ownership can be a positive experience that leads a family business to further stability and success. But what happens when a family business isn’t prepared for a change in ownership?
As Steve Legler observes, the family and business aspects of the Three-Circle Model are constantly in flux. However, ownership is typically static. It remains the same. For decades at a time. Often, family businesses are so focused on the family and business side of things that they don’t pay heed to ownership. They assume that they’ll have time to prepare for a transition. But unexpected deaths happen. And when a family business is unprepared for a change in ownership, unaddressed issues will arise, conflict between family members will lead to disarray, and the ineffectual transition of power will cause chaos. How do you avoid this catastrophe?
Find the answer in “Ownership: The Forgotten Circle of Family Business.” Steve Legler provides starting tips on how to prepare for a change in ownership in a family business.
Read about how to prepare for a change in ownership in a family business here.
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