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Part III of our series on Shakespeare and Family-Owned Businesses takes us back to a familiar theme: managing succession in ownership and leadership in family-owned businesses. And we turn again to Lloyd Steier, Professor in the Department of Strategic Management and Organization at the University of Alberta School of Business and Director of the Alberta Business Family Institute, for his insights. According to Professor Steier, the third and final Shakespearean method of surviving success comes…
For fans of Shakespeare, our blog is taking a literary bent again. Our first Shakespeare post related the lessons from King Lear. Now we turn to Hamlet. We all know that one of the biggest struggles of a family business is surviving succession. According to Lloyd Steier, Professor in the Department of Strategic Management and Organization at the University of Alberta School of Business and Director of the Alberta Business Family Institute, William Shakespeare’s writings…
One of the biggest struggles of a family business is surviving succession. According to Lloyd Steier, Professor in the Department of Strategic Management and Organization at the University of Alberta School of Business and Director of the Alberta Business Family Institute, the writings of William Shakespeare are one place to look for strategies of survival – “Shakespeare offers us eternal lessons and shows us that these issues have been around for hundreds of years.” Steier…
You’ve gone through the motions of succession planning—groomed your successor, established and executed all the attorney-advised documents—and now you’re prepared to hand off your business, right? Not necessarily. Many family business executives actively or passively resist the transition process they once agreed to when it comes time to implement the plan. Even a well-crafted succession plan can fail if it lacks one key element: psychology. A focused review of the executive’s and member’s psychology should…
Just as a family strives to provide funding for opportunities, a family business should consider establishing funds as reserves for particular purposes. According to Ramez A. Baasiri, author of Interrupted Entrepreneurship, these funds will “allow you to cultivate the next generation so they can handle a broad range of interruptions in entrepreneurship and have the peace of mind and skills to enhance their business resources for others to benefit from.” Education Fund. Establishing an education…
Most family business owners might live their entire lives without running into securities law issues or problems. Many probably believe that there is an automatic exemption applicable to a family business from the registration and antifraud requirements under the federal and state securities laws, which are designed to protect investors. Well, it’s not quite that simple. Let’s take a short true/false quiz on how the securities laws might impact a family business under certain circumstances:…
There are a multitude of ways to realize ownership transition–some simple, some complex, some a safe bet and some full of risks. For the ambitious, successful family-owned company that wants to make it to the big leagues, an initial public offering (IPO) as its succession planning tool, though unusual, may be worth consideration. (For a quick overview of the pros and cons of IPOs, see this infographic). If your interest is piqued, here are…
The award-winning TV sitcom Arrested Development, now in re-runs on Netflix, was premised on the rise (and mostly fall) of an American family business, the Bluth Company, owned by a comically dysfunctional family. Engaged in “mini-mansion” real estate development in Newport Beach, California (and, illegally, Iraq) the Bluth Company fell on hard times when its President, George Oscar Bluth, Sr., was arrested and imprisoned for securities fraud and embezzlement. His son, Michael, stepped back into…
We’ve all heard the chatter (or read about it in this blog). The owners of family businesses need to start thinking about their exit strategy. To put it in perspective, Robert Nason of John Molson School of Business reveals that “the retirement of baby boomer business owners will bring about the largest turnover of economic control in history.  … In Canada alone, an estimated $1.9 trillion in business assets will change hands, affecting some 3.5…
Recently we published a post in our blog about succession and the steps necessary to see it through. Having an open, honest, and transparent discourse with family members is one such step. Yet, this is often more easily said than done. A recent study conducted by Wilmington Trust on families with a net worth in excess of $20 million found that many leaders of wealthy families have no plans to share inheritance details out of…