Family Business Succession Planning
As in any business, in a family business, transitioning the business from one generation to the next is a complex and difficult process often resulting in conflict among family members. Family business succession conflicts are heightened by the particular nature of a family business.
When the elder generation relinquishes control of a family business, there is often a struggle for control between members of the next generation. This type of conflict, because it is relates to family relationships and histories, lends itself to the mediation process with an experienced family mediator who has a deep knowledge of business and finances.
The transition of a family business to a new generation often causes strains and conflicts amount the family members. One of these is a possible divergence of view as to whether the family business should continue or not. Another is whether the plan for liquidation is sound and will optimize the value for the family member stakeholders. Moreover, there might be a dispute about the sharing of proceeds between family members. The transition away from the family business can be emotional and difficult for the family participants.
Mediation can help to restore family relationships, heal wounds, break through impasses, and work on concrete structures and agreements that help the family members go forward with their goal of operating a profitable business smoothly and without unnecessary family conflict. Diverging interests can be reconciled or accommodated so that conflict is reduced.
Because family mediators are experts in people, family mediators can help recognize and reconcile differences in values, temperament, family history, business outlook, financial knowledge, (or lack thereof) which underlies family business disputes. The setting in mediation (rather than in litigation) greatly benefits the family, and can result in transformation of family relationships. Mediation is well suited for resolving these difficult family business issues.
If you are considering mediation services for your family business, and would like to speak with a MCFM mediator, search our database for family business mediators specializing in Family Business Succession Planning within the Commonwealth of Massachusetts.
Return to Family Business Mediation