Welcome to the Network of Family Businesses & SKM Associates Family Business Advisors

Advising and Consulting Business Families in the journey to build their Family’s Legacy

  • Successful family businesses clearly define who is responsible for what, and who is responsible for succession.
  • Long-lasting family businesses maintain a robust entrepreneurial climate.
  • Family Businesses are generally more than the sum of their parts, and they exhibit unique behavior as a whole rather than the singular behavior of the Family system, the Business system, and the Ownership system.
  • Communication within families is complex, there is no one size fits all solution. Appropriate structures and guidelines can provide platforms to facilitate transparent dialogue.
  • Building a Family Legacy requires determining what will be passed to the next generation.

SKM Associates present at the University & Whist Club and hosted by the Small Business Development Center and Delaware Business Times.

EMERGING LEADER PEER GROUPS

      Contact Us To Learn More About The Emerging Leader Peer Groups For Business Families

 

SKM Associates

SKM Associates LLC and the Network of Family Businesses exists to serve and assist family businesses as they build and preserve their family legacies.  We work with family enterprises and closely held businesses on issues such as succession planning, communication, board and family business structure development, professional coaching and development, education, and business strategy

          Have a question related to your family business, ask SKM Associates

 

A Few Options When The Business Won’t Sell

Experts estimate that only about 20-30% of businesses that go to market end up selling.  Not all businesses are saleable.          

When there are no members of the next generation who are willing or able to carry on the business, what options do owners have when the business won’t sell?

  1. Family ownership with professional management.  For some families, developing a strong internal management team and comprehensive governance structures can open the potential for the family retaining long term ownership and oversight of the business with non-family, professional managers running the business on a day to day basis.

  2. Strategic merger or partnership.  If an outright sale of the business is not an option, there may be strategic partnerships or opportunities to merge with another organization that would allow the current owner to step back from the daily grind and reap financial rewards of the company’s future success.

  3. Set up an ESOP.  Employee stock ownership plans are not new, but a number of organizations are again considering whether this type of structure might be a good fit. 

  4. Go back to the starting blocks.  Engage outside experts or industry professionals to advise you on the strengths and weaknesses of your organization and how you can set up your business now to be more marketable in the future.  In other words, though it will take time, begin managing the business for future sale.

This list is not exhaustive, and each option has pros and cons.  Certainly each option takes work.  However, based on the statistics and anecdotal evidence, if your family owns a business and is looking to transition ownership in the next 10-15 years, there is a good chance that your family will need to be thinking outside the box to find the right solution.  In the interim, there are a number of ways to begin managing the business to open up more of those opportunities in the future. 

20 Questions: Practical Checklists For Business Families

book cover Final
 
 
 
"From his years of experience both working in family businesses and consulting to family businesses, Steve has a wealth of practical wisdom and insight to share. May the treasure trove of practical suggestions, which he and Aaron share in this book, bless your family and its business."
           Melissa Mitchell-Blitch, MS, MA; 
           Family Business and Executive Coach; 
           Founder of Eredita, LLC
 
 
"The authors use a series of very perceptive questions to tease out the differing views of members of a family business and also clearly explain the purpose of these questions. I would highly recommend this book to the leaders and members of all  family businesses."
          Frederick D . Lipman, author of The Family Business Guide (Palgrave Macmillan 2010)

Friends and Sponsors

  • LN Logo
    Sponsor and Thought Leader
  • wealth legacy advisors - susan schoenfeld
    Sponsor and Thought Leader
  • Family Business United logo
    Global Connection
  • icsbfinallogo
    Global Connection