In this the third of the series we will briefly look at how lack of defined Boundaries can impact on Family Business Succession.
The relationships within a first generation business can be relatively simple. However as the business is passed on to future generations the relationships and the vested interests can become more entrenched and more complex with the passing of years. As it is not a problem the founding generation do not put time aside to consider the businesses future or perhaps do not even want to think about it. The rules for the ongoing ownership and management succession are not considered and so it is left to chance and abdicated to future generations to resolve.
Later, where there are no guidelines, the perceived wishes and principals of the founding generations can become misinterpreted. As the value of the business increases there may come a point where this misinterpretation can become intentional.
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