The founder of the family business built a thriving business and established an empire. An empire built on his knowledge, his life wisdom, and the extensive experience he has gained. Over the years, the business owner built a dream for himself – that the business he built would be passed down to his children, who would continue to manage it and, in turn, pass it down to his grandchildren and great-grandchildren.
At some point, the founder begins to think about the future: their personal future and situation, as well as the future of the business. They begin to teach their children the essence of the business, if they are not already working in it, passing on professional knowledge and trade secrets to the next generation and effectively transferring their abilities in the business into other hands. If more than one child works and is active in the business, they must regulate the legal and hierarchical status of all their sons and daughters.
The business founder must initiate a structured and informed process that examines who can lead the business, advance it, and succeed in preserving both the business and family relationships in the process.
Most business owners at this stage need guidance, training, and leadership through such a process that can ensure the continued operation of the business and family relationships in the right direction, calmly and safely, and without harming those dearest to them.
The founding generation must understand that in order to pass on the empire built through hard work to the next generation, willingness and pronouncements are not enough. It requires investing effort in building a strong team that will gradually take the reins in all areas. It must be understood that transferring the business is a process that necessitates setting goals, establishing objectives, making decisions, cooperating, and thinking about many issues with oneself and family members.
For this, you will need trusted advisors with decades of experience in the field to guide, advise, and assist you throughout the entire process. If you are pondering these and other questions in the field, we would be happy to hear from you, guide you, and assist you.
Barzily is the leading and oldest consulting firm in Israel for family businesses and for family members involved in family businesses.
To coordinate a meeting with an accountant Michael Barzily The firm's leader in the field, contact us anytime.
For an article on transferring a Haredi family business to the next generation, Click here.
