Why Entrepreneurs Sabotage the Succession Process
Published: October 24, 2011
Recently, while having an in-depth discussion with a client regarding the potential of transitioning ownership of his company to one of his four children, he made the comment, “I will take this company down before I let it ruin my family.” This was in response to a series of questions about treating his children “equally and fairly.” It is a reflection of an emotionally charged issue. It is also just one of many issues that need to be addressed to have a successful business succession to a family member.
Along the planning path to exit a business there are many potential pitfalls. Some are created by elements outside of their control and others are caused directly by the business owner. This two-part article published on the Harvard Business Review blog speaks to some of the unique challenges for succession in entrepreneurial family businesses.
Link:
