Family Business Advice Part 1 – The Conceptual Background
We explore the natural tensions between the family system and the business system that naturally leads to tension and ultimately conflict – especially as the shareholding base widens – and how the goals of a business are very different from those of a family. We explore the different stakeholders in a family business which arise through the overlap of ownership, with family and the business
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These stakeholders range from the founder with a foot in each of the three camps to non-family employees with a foot in two, from family shareholders employed in the business with a foot in two to family members with no shareholding with a foot in only one. Each has a different perspective as does one generation to the next. We recognise how strong a family business can be if managed appropriately and the benefits of using outside advisers to put in place a “system” that will manage the conflict and build on the strengths.
The stakeholders are as follows: