The biggest threat to the sustainability of your family business may not come from competition or evolving technologies. It may come from the family itself. As a family business director, you should be attuned to this risk and take the steps necessary to help prevent, or at least de-escalate such situations. In this week’s post, we suggest a few paths forward.
The authors of a 2018 article on the Harvard Law School Forum on Corporate Governance and Financial Regulation identify three components of an effective response by public companies to activist investors. We think the recommendations translate well to family business boards dealing with one or more disgruntled family shareholders.
Stewarding a multi-generation family business is a privilege that comes with certain responsibilities, and each family business faces a unique set of challenges at any given time. For some, shareholder engagement is not currently an issue, but establishing a workable management accountability program is. For others, dividend policy is easy, while next gen development weighs heavily. Through our family business advisory services practice, we work with successful families facing issues like these every day.
Corporate Finance & Planning Insights for Multi-Generational Family Businesses
This is the inaugural post for our Family Business Director blog. By way of introduction, we thought we would anticipate a few questions that you might have.