We have traditionally advised you about what not to talk about at the Thanksgiving dinner table, but this year, we thought we would highlight a more positive family business conversation that you might want to have with your family shareholders—if not this weekend, then sometime soon.
The question is: What is the economic meaning of the family business for our family? Is it an economic growth engine for the benefit of future generations or a source of lifestyle for shareholders today? Is it a “safe haven” store of value or a source of wealth accumulation allowing shareholders to diversify away from their economic dependence on the business? Gaining consensus on this question can help make the many other questions family businesses ask about dividend policy, capital structure, and capital budgeting easier to answer.
Check out this brief five-minute video about the meaning of your family business from our recently launched Family Business On Demand Resource Center.