The Foundations of Family Business Continuity

For a business to remain in family ownership, there are three requisite foundations. For successful succession and continuity of ownership these must be built in tandem over time. The three foundations are:

Asset Growth

The accumulation of total family assets (to include the business) over time. Usually this means the ownership of and investment in a successful business - the family company - with a track record of value-adding management practice combined with prudent ownership.

Family Consensus

Agreement by the successors of the founders to remain together as a family in business. Evident as consensus within the family to a commitment to sustained ownership, around a core purpose and guided by the values of the founders.

Family and Company Leadership

Attraction, development and retention of both family and non-family individuals. Qualified individuals with specialist, generalist and entrepreneurial expertise to meet the current and future leadership needs of the business and those of the family.