In this issue
In her 2003 book, The Greater Good, historian and educator Claire Gaudiani describes philanthropy as a “social investment” designed to offer those who have less the opportunity to contribute more to our economic growth. In the U.S., she writes, “citizen generosity has created a social environment where capitalism could flourish without destroying democracy.” Our cities have been built through philanthropy—homes, schools, universities, museums, hospitals, churches and synagogues, as well as civic buildings of every size and description.
I am looking for information to help us determine the best way to bring a son into our family-owned business. There is an established management team (non-family). The son is seasoned with Fortune 500 experience and capable of running the company, once he learns the business. The concern is that there will be resistance from the established management team, making it difficult for the son to successfully integrate and eventually take over. Thank you in advance for advice on the risks and options to consider.
A third-generation paint manufacturer in the Southeast was looking to expand its business by acquiring a large competitor that had fallen into financial trouble. The family CEO came to see us with the following dilemma: “I need to raise capital for my expansion, but I’m not interested in giving up control.” This is a common refrain among our family business clients.
Indeed, when family companies start talking to outside investors or other capital sources, the issue of control—not the amount of money—is generally the main stumbling block of the negotiations.
You can’t run a successful golf course if you’re the type of person who’s teed off by change. Family-owned golf operations have been dealing with dramatic shifts in financial and demographic conditions over the past decade. Most significantly, the number of new courses has increased faster than the population of golfers.