Will, a young member of the third generation of owners of a highly profitable family business, told me his family business had recently been sold. His family members had been so wrapped up in dealing with the financial elements of the transaction there had been no discussion and very little thought given to the future of the family.
Will invited me to meet with his family, and I began by asking thought-provoking questions. “Are your family members going to split up the proceeds from the sale and all go your separate ways, or do you all want to leave a lasting legacy? Do you still have common goals? Are there wishes you share for the future? Dreams you want to dare together? And what about the logistics? Will each family branch want their own wealth advisor, or could there be an advantage of keeping your money together? Will you want to use a family office? Establish a family philanthropy? Provide wealth education for the next generation together? Will you want to meet with your immediate family — as well as aunts, uncles, and cousins — regularly to have fun and to come together for the common good? How will you make decisions together in the future?”
Will and his family had not thought about most of these issues before. At our meeting, there was a lot of discussion, some tears, and thankfully a great deal of laughter as they discussed the answers to these important questions. Plans were made and committees were created to explore the family’s new vision.
After the meeting, Will shook my hand and looked into my eyes. “I had no idea our family would still need a family business advisor after we sold the business. This isn’t the end of our family business, it’s Act II for our family.” More importantly, he said he was fired up about finally working with his family to create a vision, mission and values and having the opportunity to truly make the world a better place.
Good governance makes worthy goals easier and more enjoyable for families who want to work together successfully whether they are in or out of the family business.