The Business of Family

Peter Evans is an advisor, consultant, and speaker to legacy families, family offices, and multigenerational enterprises all around the world. Peter creates the opportunities where affluent families have the greatest chance of flourishing. Peter is also part of a legacy family himself; he is a 5th generation member of a 7th generation American enterprise established in 1885. Peter married into this family and was astounded by the welcoming and inclusive nature of his wife's large family. The family enterprise is now a holding company with over 500 shareholders, all of whom are family members. Of particular interest are the Family Summits held annually, which are designed to re-engage family members, partake in family traditions and rituals, discuss philanthropy and reset for the year ahead. Peter shares his experience of what it was like to join a well-established legacy family and how he has used this unique experience to pivot his career and help other legacy families flourish. Standout Quotes: "We can't really plan significantly for longer than 5-10 years, you just learn that along the way, things change; the world changes" - [Peter] "I'm really interested in making sure that the family's values are aligned with their actions" - [Peter] "To have some sort of formal way of telling stories, I think, is critical" - [Peter] "The most important thing you'll do are these rituals" - [Peter] "If we have the privilege of having wealth and means, we have an obligation to give back" - [Peter] Key Takeaways: Peter is the 5th generation member of a 7th generation American enterprise established in 1885. He is an adviser, consultant, and speaker to legacy families, family offices, and multigenerational enterprises globally. He became a part of the family when he married his wife and was included. The company began as a group of lumber companies started by two brothers who liquidated everything after 45 years to invest with their partner, Friedrich Weyerhäuser in 1901. Peter's family had continued to be involved with the business as it expanded, although there were no male heirs in the second generation, till the 3rd generation. The family later started a private trust company in 1964, at which point they became the 3rd largest retailer of building materials in the US. Today with diversification, they are now a holding company with over 500 shareholders, all of whom are family members. Peter's children are already involved with the family business actively and eagerly look forward to partaking in the annual family meetings. The Family Summit: This annual family meeting usually runs over 3-5 days, on the same weekend every year, with activities like the coming-of-age ritual and elders’ ritual, Olympic games, business meetings, philanthropy group meetings, and talks by guest speakers. The goal is to make it so interesting that people want to come back. Planning Never Stops; the family forms a long-range planning committee every 5 years to have a clean slate to think through everything. A pattern of liquidating a significant resource once every 20 years was also observed; this 'Generational Harvest' would provide liquidity to each shareholder, giving them the freedom to make their own investments. The family investments today are largely in Real Estate, like residence halls or low-income housing units, all intentionally inclined towards 'doing well by doing good' which is a value the family holds. Peter left his role as president of the family enterprise in 2003 and has since then helped other family enterprises manage their multigenerational interests. He believes families with vast amounts of capital can make decisions that affect millions of lives and works to ensure that these families act in accordance with their values. "I can hold a mirror up to you so that you can begin to see yourself, your family system, and your footprint in the world; the other thing I can do is open the window so that you can look out into the world and see how other families made choices during different transitions" Peter's most satisfying work is sitting with family members and watching the interactions; his work is focused on helping build bridges in communication and relationships. His role is a position between being a business consultant, priest, and therapist all of which require a deep level of trust and respect. At its core, his work is about relationships. Peter’s role as a 'Personne de confiance': This is a confidential advisor based on their trust, respect, and honesty. The way to get into that role is to come into the family that needs help, taking time to build trust and confidence. Very often Peter has to model a way of doing things like chairing a meeting, inclusion, and effective decision-making while keeping in mind that the goal is to pass on the mantle of leadership. Most of the time, the G2 generation is the one that reaches out to him, however, in some cases when the patriarchs are comfortable giving up authority, this spurs the G2 to take up the mantle and learn how to hand over to G3. Sometimes, the G2 has even already made the transition in their lifetime, adapting to the values and culture while the G3 grows up having a completely different experience. Storytelling is critical in documenting family history. Peter uses this both in his family enterprise and while working with others. His family works with a full-time archivist who helps research the lives of people such that detailed questions can be asked and stories can be told more deeply. It also offers an opportunity to share lessons from the failures, trials, and tribulations of family members. While still active in his family he was always open to learning from other families and when he left his role, he wanted to be involved in creating the consciousness in families that they can impact the world. Based on Peter's background, he has the experience which gets him into those family spaces after which he starts work. From Peter's experience, when it comes to cultural mindsets like having female leaders, and diversity, there is a lot more openness in the US than in most other places. Although he tries to encourage such views, some cultures are just not ready for it. However, families of significant or multigenerational wealth are naturally global these days, hence it is becoming increasingly difficult to avoid influence from other cultures. Family Rituals are the most important way to bring the family together continuously over the years because they help young people feel acknowledged. Peter's family has a children's program packed with several activities that keep them eager to return. After the age of 14, they can start going to business meetings. These activities help the family familiarize themselves with teenagers and create a more welcoming environment in the business meetings. It is necessary to identify who is family and the kinds of roles available to different members. Each family does this differently, but Peter's family has selected the option of Inclusion. Building Family Governance starts with having a reliable cadence of meetings quarterly, as well as major annual gatherings; this goes hand and hand with excellent communication. The next step would be to memorialize family values and have a direction and then this can be the foundation of a constitution. The constitution is a living document and should be examined and changed as required. Peter also uses the concept of the "5 Capitals" within his family and the families he works with. Philanthropy is another tool Peter has been familiar with. It is fun to watch families come together to figure out ways to give back based on their different interests and drives. Very often, families look at their business as heirlooms which begs the question "Is the business an heirloom or an investment?" Sometimes it is hard to sell a business because it's been our identity for years; thus, selling is easy if the business is only an investment but if it functions as an heirloom then it may not be advisable. In some situations, the business is on the spectrum in-between, which means only certain objects or aspects may be more valued as an heirloom. Mike's family takes pictures yearly on the same spot on a piece of land which over time has taken up the role of an heirloom too. From Peter to his children: "This is your life, do what you love and do it often. If you don't like something, change it; if you don't like your job, move on. If you don't have enough time, stop watching TV. If you're looking for the love of your life, stop, they'll be waiting for you when you start doing the things you love. Stop overanalyzing; life is simple. All emotions are beautiful, when you eat, appreciate every last bite. Open your mind, arms, and heart to new things and people; we are united in our differences. Ask the next person you see what their passion is, and share your inspiring dream with them. Travel often; getting lost will help you find yourself. Some opportunities only come once so seize them. Life is about the people you meet and the things you create with them, so go out and start creating. Life is short, live your dream and share your passion." Episode Timeline: [00:52] About today's guest, Peter Evans. [02:44] Peter shares his family history. [07:10] What makes your annual family meetings appealing to the younger generation? [12:28] Does a value system guide the investment making decisions? [14:00] Peter's work helping other family enterprises. [18:40] Peters role as a 'Personne de confiance'. [24:22] Family Storytelling as a tool in Peter's work with family enterprises. [29:08] Was it your experience with your own family that led you to work with other families? [31:39] What are some of the differences in culture that showed up during your work with different families across the world? [34:50] How important is it to have traditions that bring the family together? [38:41] Who is a Family member? [39:17] Building blocks of Family Governance. [44:10] Philanthropy in the family enterprise. [46:16] How shared experiences come into family meetings. [48:14] What is the role of Heirlooms in the family enterprise? [50:47] Peter's letter to his kids. For more episodes go to BusinessOfFamily.net Sign up for The Business of Family Newsletter Follow Mike on Twitter @MikeBoyd If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!Special Guest: Peter Evans.Sponsored By:The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations. Links:Laird Norton Company — Laird Norton Company is a family-owned enterprise that provides long-term capital and resources to empower companies to thrive—and we’ve been doing it for seven generations. Peter Evans | LinkedIn

Chris Powers is the Founder and Executive Chairman of Fort Capital and the host of The FORT podcast. Chris is a serial entrepreneur with more than 16 years of real estate development and investment experience. Since founding Fort Capital, the company has invested over $1.4B in Class B industrial, commercial, multifamily, student housing, and residential and land development projects. His drive to always remain curious, desire to connect with and learn from others led Chris to start his podcast, The FORT. In the FORT, Chris talks with leaders of businesses across real estate and a variety of industries and dives deep into ideas and topics that are not regularly discussed. Chris covers each guest's story and explores in detail the critical moments that led to success, failure, growth, and confidence. He has successfully published over 200 podcast episodes. Standout Quotes: "You only are going to be on this earth one time, you really are not coming back again after the first time; let's make the most of it" - [Chris] "Everything that you were mad at your parents for when you were a kid, is everything you respect them for when you're an adult" - [Chris] "Money never mattered to my dad, being content and serving others did" - [Chris] "I think it's a very special thing in life to really want to be good at something" - [Chris] "If you're a parent and you actually can't give your kids the things they want, it makes it almost easy; what's tough is when you can give them what they want and you choose not to" - [Chris] "How can you expect someone that grew up with everything easy and given to them, to ever have that burning desire" - [Chris] "Kids don't learn by words, they learn by actions, so I can say everything I want to my kids but they're going to be watching what I'm doing" - [Chris] "You don't keep families together, particularly with the amplification of wealth, if you're not intentionally practicing the values" - [Mike] "We're living in a really cool generation where I think we're going to be able to tell our stories to our kids like nobody's been ever been able to do it before" - [Chris] "There's just very few people that matter in this world that you remember because of how much money they had, it's really about what they did… you will be defined by how much people remember you" - [Chris] "The majority of businesses that do really well hit singles and doubles over and over" "When's enough enough?... it depends on how big of an impact you want to have" - [Chris] The first great business decision you're going to make is who you marry" - [Warren Buffet, Chris] "There's things in life that are either giving us energy or taking away energy" - [Chris] Key Takeaways: Chris Powers is the Founder and Executive Chairman of Fort Capital. He is also the host of the podcast, "The FORT", as well as a serial entrepreneur with over 16 years of experience in Real Estate Development and Investment Experience. Chris is a first-generation entrepreneur with stories that shaped him down to his relationship with his children. Chris's dad was a lawyer who valued education, however, after 13 years of being a lawyer, He decided to become a doctor. With two kids and a wife at home, He left law and started medical school at the age of 39 which took place over 8 years with a financial toll on the family. The experience during those years created the foundation for the impression Chris has about money, feeling fortunate to have been more deprived of things than his peers. Chris also learned the importance of doing things in life that give fulfillment. Because of the experience of not having money over those years, Chris became an entrepreneur at a young age to get the money he needed. However, Chris has a fear that his success allows him to skip the chances to deprive his kids of the things they should be deprived of. Following the passing of his dad, Chris witnessed a turnout at the funeral and stories that depicted the level of impact people felt while his dad was alive. Although it was a traumatic unexpected event, Chris felt equipped at the time to take the reins in the family because his father had trusted him very early on to do things. This taught Chris that there's a level of transparency that is healthy with children, for them to start learning early on how the family operates. "If you study people who are extremely successful in life endeavors, there is a common thread among them where they were in a position to really want something while growing up". This has made Chris understand that it is hard but necessary to deprive kids of certain things even when they can be gotten. He is trying to teach his kids not to be overly reliant on his wealth but to forge their path. Additionally, having the nature to treat people very well even from childhood is a good foundation to build on. Raising great children amidst wealth is a challenge, and the importance of transparency cannot be overemphasised, especially when it comes to treating people well, or other issues affecting family values. This is important to note because kids learn by watching the actions of their parents, hence the teaching values has to be transparently done through actions. This transparency also translates to work, as Chris tries to make his work fun and appealing to his kids rather than intimidating. Chris has been very intentional about leaving content for his children to learn from, especially in recordings and this is one of the motivations for his podcast, "The FORT". Currently, Chris is working to create intentional family traditions that build the family experience. The first of these is an annual talk recorded and kept to give the kids later in life. Starting Fort Capital: While in school, Chris wasn't particularly trying to make a lot of money but came across someone in Real Estate who helped him learn and start Real Estate deals which resulted in his company "Fort Capital". It is a Real Estate private equity company based in Fort Worth Texas. It is focused on buying Class B industrial and multi-tenant properties, functioning as value-add buyers. As time goes by the desire to sell lessens because there have been great liquidity events from sales and holding cash from sales isn't very impactful anymore. This is beneficial especially for newcomers because Real Estate is a great tax tool. It is easy to get overwhelmed by other companies that seem to be doing immensely well, and be tempted to keep taking high chances. However, the majority of businesses succeed by surviving and growing incrementally. To be an entrepreneur you need someone supportive even when things aren't so great. Chris recalls how selfless his mum must have been to be supportive of his father's unexpected decision to study medicine. This played a major role in the success of his dad just like his wife plays to get him to where he is today. Concerning his view on generational wealth, Chris believes the easy route for a lot of folks with money is to let their kids assume that it's all going to be theirs, as soon as they believe it, whether it's true or not it can alter their lives. He is yet to decide on what he will leave for his kids but currently focuses on shaping their mindset on money. "I want my kids to have something but I want them to earn it and I don't want them to live a life dependent on it; not because I think it would be bad for them to have money but I think it would rob them the joy of living a fulfilled life" From Chris to his kids: The way they will be judged when they leave earth is by the impact they've had on others. For them to live a fulfilled life, they need to think each day, "if it was all over tomorrow, what did I leave the world"? An exercise for listeners concerning this is "If you were at your 80th birthday party, write down what you would expect people you care about to say to you". You've got one shot, make it count. Episode Timeline: [00:49] Introducing today's guest, Chris Powers. [02:25] Chris describes inspiring life lessons from his dad. [12:24] How did you deal with the loss of your father? [16:30] How do you create balance with depriving your kids of some things for them to learn key values? [28:45] Are you being intentional about creating lessons for your kids to come across one day? [33:39] Do you have any intentional family traditions to build rituals around the family experience? [35:50] Chris shares his journey to success in his business. [45:33] Was there a breakthrough point where you knew you could breathe? [48:58] What did you learn from your mother and wife in the role they play to support the family? [53:04] Have you started to think about Generational wealth? [55:53] A letter from Chris to his kids For more episodes go to BusinessOfFamily.net Sign up for The Business of Family Newsletter Follow Mike on Twitter @MikeBoyd If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!Special Guest: Chris Powers.Sponsored By:The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations. Links:Chris Powers — As an undergraduate, Chris Powers started buying rental properties and leasing them to fellow Texas Christian University students under the banner Powers Acquisitions LLC. Powers put down roots in Fort Worth after graduating in 2008, and rebranded his real estate endeavors to Fort Capital in 2012. Today, the company’s portfolio boasts 1.5 million square feet and $220 million in assets, and includes industrial, multifamily, and urban properties across Texas. Throughout the day, Powers’ passion for Fort Worth is clear from meetings with business leaders to talks with his own team members.Fort capital — Established in 2005, Fort Capital is a forward-thinking investment firm with a focus on real estate and private businesses. They look beyond the usual, and while we seek to provide our investors with superior financial results - their greatest returns are improved lives. Their team is their competitive advantage as they seek meaningful work and relationships.‎The FORT with Chris Powers on Apple Podcasts — The podcasts are the Conversations with leaders in real estate & business. They cover the stories often not publicly discussed.

Mr. Hughes, a resident of Aspen, Colorado, is the author of Family Wealth: Keeping It in the Family, and of Family – The Compact Among Generations, both published by Bloomberg Press, and is the co–author with Susan Massenzio and Keith Whitaker of The Cycle of the Gift: Family Wealth and Wisdom, The Voice of the Rising Generation, and Complete Faith Wealth, all published by John Wiley & Sons and is a co-author with Hartley Goldstone and Keith Whitaker of Family Trusts: A Guide to Trustees, Beneficiaries, Advisors and Protectors". In addition, he has written numerous articles on family governance and wealth preservation and a series of Reflections which can be found on his website jamesehughes.com. He was the founder of a law partnership in New York City specializing in the representation of private clients throughout the world and is now retired from the active practice of law. Mr. Hughes was a partner of the law firms of Coudert Brothers and Jones Day. Standout Quotes: "The first asset a family owns is its spiritual capital; if it doesn't have it, it better develop it" - [Jay Hughes] "If we're learning together and we're sharing what we learn, guess what? we're likely to make better joint decisions" - [Jay Hughes] "A family that's nothing but quantitative capital is toast" - [Jay Hughes] "You don't have entitled children and you will know how much is enough if you're concentrating on growing your qualitative capitals" - [Jay Hughes] "The two great obstacles to adjustment for a human being are sex and money; money is the worst of all because no nice person will speak of it" - [Jay Hughes] "Every family has ghosts" - [Jay Hughes] "Almost always, the plan that they have for transition...is a liability" - [Jay Hughes] "Way too much time I think is spent on saying we need to be resilient, that's good but the real question is we need to be enduring" - [Jay Hughes] "There's no such thing as financial resources, there are only things that are the representation of someone else's dream; anybody who doesn't get that right just misses the problem of the recipient" - [Jay Hughes] "It astonishes me, Mike, that many families with huge resources have never studied the fact that human beings don't learn the same way" - [Jay Hughes] "You don't just start; you start by building up those cells are going to make up the team on the journey" - [Jay Hughes] "Storytelling is incredibly important to discover our history" - [Jay Hughes] Key Takeaways: Jay's book "Family Wealth" was a huge inspiration over a decade ago for Mike's interest in the concept of Family Business. After a major midlife crisis, Jay realized that his work in the law had a major flaw being that he was the only person who could use the structures he was creating for clients. He understood that the responsibility of a professional is to make clients more capable and liberate them but he had made them less capable. He started focusing more on ideas to make families more independent and also shared these ideas. Jay started to shift away from legal structures which were focused more on the 'How?' questions, and move towards the 'Why?' questions which had more impact on families. He also spoke publicly on different platforms about it and the message was well-received, encouraging him to start his book. With the clients however this approach was challenging, but Jay understood that if he simply did what clients asked, it would not help them achieve their goals. He learned to wait for clients to gradually open up to the approach. It had also become needful for Jay to have a beginner's mind with this new approach, not assuming he had all the answers as usual but showing concern and the desire to help families. Wealth comes from the Anglo-Saxon term "Weol" which means "well-being"; Financial capital is a form of wealth but it is not wealth. In trying to figure out the assets of a family to understand them better, a Balance Sheet has proved to be a humane tool. Using this tool, there are 4 qualitative forms of capital; the first is Spiritual Capital. This refers to a common purpose where every member of the family by affinity seeks to enhance the other's journey of happiness. The next is Social Capital; can you make really good joint decisions together over a long period of time? To make good joint decisions, there has to be Intellectual Capital, meaning the family has to be a learning system where what is learned is shared. Another form of capital is Thriving Human Capital which is followed by the only quantitative capital; Financial Capital. Financial capital is the engine that grows the others and does not simply function as accumulated wealth. It is critical to understand that the qualitative forms of capital must always be kept in focus above the financial capital that is meant to support them; a family that simply focuses on putting financial capital into consideration is not likely to succeed together. There are now assessment organisms for a family that is thoughtful to annually assess the states of its capital. Sigmond Freud in his work realized that the most adjusted or happiest people were those who learned to love and work as a vocation, not labor. The vocation is often a dream which takes a while to manifest and forms the stories about how the aspiration of that dream inspires people to perspire towards achieving it. When parents ask their children more about their aspiration rather than debunking it, the kids realize how inspiring it is to them and if they can perspire towards it. The Ghost Liability on a Family's Balance Sheet: As much as the balance sheet shows the assets, it also shows the liabilities, and one of the liability questions is "What's our big obstacle?". When looking at the internal obstacles, there is a high tendency to assume that the people in the room are the obstacle but it is pivotal to note that these aren't the only people in the room. Every family has ghosts which may be good ones brought up in stories or the "Hungry Ghosts" whose goals were unfulfilled and have lingering problems. Other kinds of ghosts are stories that are untrue but are told as if they are true. Surprisingly, another form of ghost is the plan for the transition itself and preexisting family structures which are often a liability. This is particularly because the transition plan would not have been able to consider people in the future who would later be constrained by it; in other words, usually, the plan is too small. To fix the problem, the old constraining plan must be shed, creating room for fragility and risk to form a new larger plan which will be used until it becomes too small for another generation. The qualitative capitals are groomed and grown in this process such that the new larger plan can accommodate growing those capitals. All the ghosts must be noticed and addressed accordingly so they don't cause problems in family transition. Inevitably, beneficiaries will at some point realize that they're playing a role they didn't sign up for, and this will be a huge reveal that will hit them like a meteor. When this happens, parents need to be extremely caring and deeply understanding. The question now becomes "is the meteor a gift or a transfer?"; because a transfer is easy but gifts come with love and are very hard to make. The parents and other professionals have to work hard to ensure this comes across as a gift rather than a meteor of obligations. Despite this, the burden that comes with it cannot be ignored and must still be recognized with love. The key is for the kids to understand even from childhood that the purpose is to grow themselves; preparing early for this revelation increases the odds of a successful outcome. It should be noted that it can be very disastrous to justify this burden by saying "By the way, you never have to work" as if it is handled poorly this meteor could lead to some form of post-traumatic shock. Hence the people who do well are those who take time to explore it and grow because what is being received is not just money but the consequences of someone else's dream, and the goal is to use it to aspire to achieve the dreams of the recipient. Again, it is emphasized that this gift should be a consequence of magnanimity given with love to the recipient and the hope that it helps them find their happiness, anything else is a transfer that comes with ambition and expectations which may have a poor outcome. A starting point in this approach of a successful family enterprise journey is for families to understand the different ways by which members learn, knowing that a thriving human capital defines Intellectual Capital. This also applies to trustees. Working on this helps the family identify whose skill is needed at different points in time. It also helps to disseminate information for joint decision-making in ways that are best absorbed by individual family members. Another very useful tool is Enneagrams; they help understand how different personality types determine how individual family members view situations or react. The aim of this phase is to properly prepare by equipping the family before starting the journey. Storytelling for families isn't simply for the joy of the story; it helps understand time. A good way to foster storytelling is to have reunions where each person is asked "who is the oldest person you knew and what did they tell you about somebody older?". This also applies to those married into the family and helps them weave into the family. Jay's letter to his kids; that they are loved and he would ask for their forgiveness. Episode Timeline: [00:51] Meet today's guest, Jay Hughes Jnr. [03:10] How Jay's book 'Family Wealth' came about. [06:49] How did the families receive your approach of asking the "why?" questions? [15:20] Defining Wealth and the different forms of capital. [23:21] Is there a measuring stick for success in qualitative capital? [32:15] The Ghost Liability on a Family's Balance Sheet. [43:41] What is the most appropriate way to prepare beneficiaries and include them in the plan? [58:10] How does a family start this journey? [01:08:20] Jay's View on Generational Story-telling. [01:16:44] Jay's letter to his kids For more episodes go to BusinessOfFamily.net Sign up for The Business of Family Newsletter Follow Mike on Twitter @MikeBoyd If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!Special Guest: Jay Hughes.Sponsored By:The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations. Links:Wise Counsel Research Inc — Mr. Hughes is a current active Fellow of Wise Counsel Research Foundation a Boston based think tank providing qualitative advice to families who seek to avoid the shirt sleeves proverb and to help their families flourish.Families Of Affinity — James (Jay) E. Hughes, Jr. is the author of the acclaimed classic Family Wealth and Family: The Compact Among Generations, and the co-author of The Cycle of the Gift: Family Wealth and Wisdom.Family: The Compact Among Generations: James E. Hughes Jr.: 9781576600245: Amazon.com: Books — The successor volume—and intellectual prequel—to Family Wealth Why do some families thrive for generations? What accounts for the sad deterioration that other families experience? This book builds on the now widely accepted practices offered in Hughes's signature work Family Wealth and offers families the professionals who serve them a view of his panoramic insights into what makes families flourish and fail. It lays out the basis for the vision of family governance the author has developed through his work and research. His advice addressed not only what to do but how to think about the complex issues of family governance, growth and stability, and the ongoing challenge of nurturing the happiness of each family member.Family Wealth: Keeping It in the Family - How Family Members and Their Advisers Preserve Human, Intellectual, and Financial Assets for Generations: Hughes, James E. — The landmark book that changed the way exceptional families think about their heritage, their wealth, and their legacy to future generations--now revised and expanded.

Bradly J. Franc (“Brad”), is the creator and author of the Amazon best-selling book entitled The Succession Solution: The Strategic Guide to Business Transition. His firm The Succession Coach LLC, works with business owners to create as well as execute on their succession plans. Brad is an attorney, entrepreneur, and business strategist who specializes in the transfer of family and closely-held businesses. He is also a former board member of Catalyst Connection. Brad began his professional career by becoming a CPA and working for the international accounting firm now known as EY. From there, Brad became an entrepreneurial strategic business adviser and a business lawyer representing every aspect of the closely-held business. Standout Quotes: "Writing is the highest form of thinking" - [Brad] "It's not that there's a particular process but you pick a process" - [Brad] "The longer you wait, the fewer the options you have, with respect to succession planning" - [Brad] "You can't do strategic planning unless you understand the company's culture" - [Brad] "It is incredible how many times people think they know what they have, and they don't" - [Brad] "Conflict is good, it gets things out" - [Brad] "All progress begins with honesty" - [Brad] "Most people overestimate what they can do in a year, they underestimate what they can do in ten" - [Brad] "If you want to improve something, measure it, if you want to improve something exponentially, measure it and have a report on it" - [Brad] "Succession planning is a form of strategic planning" - [Brad] "For things to stay the same, things must change" - [Brad] "I try to tell that next gen, 'your job is to increase the value and to maintain the values' " - [Brad] Key Takeaways: Bradley is the author of the Amazon bestseller "The Succession Solution" and his firm, 'The Succession Coach' works with business owners to create and execute their succession plans. Brad is now an entrepreneurial strategic business adviser and a business lawyer representing closely-held businesses. Brad had started as a CPA with the goal to reduce taxes, and later he went on to go to law school. He realized he was helping but not solving the problem so he merged strategic planning with Estate and Succession planning which formed the Succession Solution. Initially, his goal was to simply put down the strategy so he could convince himself that it was feasible, however, he realized someone else could also benefit from reading it. This was how he went ahead to write his book, The Succession Solution. After starting a business that had made losses for two years, Brad employed strategic planning and the difference was clear; the business bounced back. There are 3 types of succession; Succession of Knowledge, Management, and Ownership. It is unlikely to be able to ensure the succession of management and ownership without the transfer of knowledge. However, more often than not. Succession involves the transfer of ownership with closely held business owners. The Succession Solution: Brad usually starts by discussing with the significant stakeholders to understand what is on the ground before getting fully involved. He also ensures the family is willing to cooperate and gets commitment upfront. The 6 stages of the succession plan: The first stage is the Purpose stage; identifying the basic values, the vision, and the "Why?". Next is the Discovery stage; understanding where they are before starting. The third step is the Challenge; to identify their strengths, opportunities, and most importantly, the obstacles. Most of the time what people want to get from the 6 steps is certainty because uncertainty creates anxiety. Brad emphasizes that conflict is good however, how that conflict is managed is critical. Communication and trust are the reason most companies fail. The fourth stage of the succession plan is the Mission stage. This is where the group sets milestones and creates strategies to overcome the obstacles previously identified. The Annual stage is next, and here the group decides steps that need to be taken within the next 12 months, to get closer to the milestones already set. The last stage is the Quarterly Review stage where the question is "what do we do in the next 90 days to get closer to the objective for the Annual stage?" The conversation of succession planning is a function of the board, hence, while members of the younger generation can have a personal conversation with their parents as the business leaders, it is fundamentally expected that the board is well suited to answer these questions. It is also helpful to talk to the professionals. Giving purpose to the outgoing generation of leaders in the family business is highly essential as it is a part of their transition. A good step is to create a family council for them to transition into, allowing them to offer more insight particularly on the culture and values of the business. The family office and council would also need succession planning. Succession planning is a form of strategic planning, as such, families should consider commencing strategic planning right after planning for succession. "The job of the incoming generation is to increase the value and to maintain the values" it is the job of the senior leadership to educate the upcoming leaders on the values of the business. Lack of planning for succession can ultimately lead to a closure of the business or loss of key employees due to uncertainty. Listeners who want to know how to get started with succession planning are encouraged to educate themselves first; Brad's book, "The Succession Solution" is a good resource. With adequate knowledge, they can also discuss with professionals. Brad's letter to his children: Never stop reading; if you want to improve yourself, read books. Episode Timeline: [00:49] Introducing today's guest, Bradley J Franc. [01:53] Brad shares his backstory. [04:25] What inspired you to write your book, "The Succession Story"? [05:52] Discussing the importance and role of Strategic Planning. [09:10] At what point do you typically get involved in the business? [10:50] The Succession Solution (6 stages of the succession plan) [26:10] How can the upcoming generation approach the conversation of succession planning with the leader in the business? [32:13] Do you also create succession plans for the family council? [36:04] Consequences of poor succession planning. [40:21] What do you suggest as a first step in succession planning? [42:00] Brad's letter to his children. For more episodes go to BusinessOfFamily.net Sign up for The Business of Family Newsletter Follow Mike on Twitter @MikeBoyd If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!Special Guest: Bradley J Franc .Sponsored By:The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations. Links:The Succession Solution — Bradly J. Franc (“Brad”), is the creator and author of the Amazon best-selling book entitled The Succession Solution: The Strategic Guide to Business Transition.

Matina Agio is a personal inheritance consultant. Her work inspires a deeper perspective into inheritance - beyond the legal and financial. She provides niche counselling, facilitating her clients- often in midlife, to resolve inheritance-related dilemmas, manage their possessions and create a meaningful legacy. Through her signature method - THE INHERITANCE MUSE METHOD™, she addresses both the tangible and intangible aspects of their inheritance, heritage & wealth. Matina’s clients include art collectors, historic home owners, affluent individuals and family office members around the world. Matina’s experience of living & working in England, France, Germany, Italy, US, Canada and Greece, allows her to address their varying backgrounds. Standout Quotes: "For me, the main wealth of our inheritance lies in the intangible inheritance because it is that which is not vulnerable, and it is that which probably the most influential" - [Matina] "A bad experience may turn out to be a very wealthy experience, it depends on how we process that...sometimes we receive good gifts in bad packages" - [Matina] "Objects are storytellers, they contain memory" - [Matina] "We just give our kids things, but we should give them stories with our things" - [Matina] "The value of something to us is always what our experience of it is" - [Matina] "Our ownership is a symphony of things put together, and we as good conductors have to master that symphony... so we can have harmonious wealth" - [Matina] "It's not what happens to you but what you do with what happens to you" - [Matina] "There are people who own a lot of things and experience very little value and then there are people who have very little things and they experience a lot of value" - [Matina] "The legacy of someone and the effect that they have in your life can never be taken away... that's the most meaningful part of the wealth that you can give others" - [Matina] "Research shows that family wealth is almost never lost due to poor financial decisions, its almost always lost by a breakdown in relationships and communication with co-inheritors" - [Mike] "You cannot make decisions without understanding who you are because who you are will affect how that thing will play out in your life" - [Matina] Key Takeaways: Matina describes an "Inheritance Muse" as someone who inspires others in relation to their inheritance. Inheritance can either be tangible or intangible. The intangible inheritance is more important because it is more influential and less vulnerable. It affects our beliefs, attitude towards life, abilities, and self-confidence. Since parents are not perfect, sometimes we get good gifts in bad packages, so to understand intangible inheritance, sometimes we have to open our minds and look at what is there and how we can manage it so it adds value to us. Describing how she started her work with inheritance, Matina shares her back story; although born in Athens, her family had to relocate to Canada following a political event that made the family unsafe. A key determining factor in her career was the heritage and culture her parents brought from Athens, which influenced her greatly. This spurred her on to study interior design and renovation of historic homes and eventually become a cultural entrepreneur. Following the death of her parents, she inherited the home in Athens and had to curate everything by herself and started to work on also curating the influence her parents had on her as part of the legacy for her children. Storytelling is the center of Matina's work; using the stories behind objects owned by clients to resolve issues. Parents need to tell stories about their things to their children because it is unlikely for a child to sell something that has a story to it. When navigating inheritance and trying to be a custodian of what has been left behind, employing the concept of "Gratitude" is highly efficacious, in that it helps to understand the value of these things. This gives a reason to own these things and helps us know what our relationship was like with those who left them behind. The Legacy Scale: This is a process to understand the personal value of any property to a person irrespective of the market value. 2 classes of Real Estate: Objective Real Estate is the first type and it includes properties that have value but no particular personal relationship. Assets such as family homes on the other hand make up the second type of Real Estate which is usually more complicated and may involve co-inheritance. There are 3 ways you can value something: First is the intrinsic value which is the value of that thing for itself without the market value. The second is the synergetic value which is the value of something in relation to the other properties owned by a person, or the impact it may have on other aspects of wealth. The last is the subjective value which is the question of "what does this mean to me? Matina shares that she only works with individuals and not groups, because with an individual, issues can be dealt with in-depth and with speed. Even if the inheritance involves other people, by working with one person you change the constellation because the most important thing for a person to understand is " "What do I want?". The goal is to empower the individual to see how the inheritance fits into his life purpose and what action needs to be taken. Matina describes the idea of "Life closure by design"; preferably the age of 50 is the ideal time to be more conscious about life closure, especially having light ownership and getting clarity on what will be left behind using "the Inheritance Muse method". For the younger generation who are about to receive, it is very important to create conversations with your parents on things they feel strongly about, their lives, and their values. When we have a relationship with something, the value of that thing is the value to us, not the monetary worth. Rather than keep that thing locked away, Matina advises people to use it in their lives in a more natural way. What we do with our inheritance has two aspects; the first is to optimize it and use it so we can create happiness for ourselves, the second is to preserve what we can so we can give it to the next generation with stories and history. The work of the Inheritance Muse is to help people understand where the real value is, in their assets. Matina explains a term called Wealth Dyslexia as the inability to grasp the scope and range of your wealth in a way that will give you value Regarding the sale of property with a history, Matina highlights that it may not be possible to keep everything but properties can be sold with the story which adds value to it. Selling a property can help the owner feel lighter and focus more on things that have particular value to them. Legacy is the effect that our lives have on other people's lives whether good or bad. Daily, we are curating our legacy, by who we are, what we do, and what we say. It's never too late to work on this. The awareness of the certainty of death is empowering as it should give the ability to live life more intentionally and assess the impact of our ideals in our lives. Inheritance is a gift given, we have to look at this and say, "what do I want with this?" It is important to look at it in a nonmonetary way, so we can know its effect on our lives. This is also covered in the "Inheritance Muse method". Understanding who you are is as simple as finding out where you are in your life and what you want. From Matina to her kids: Resilience is very important and also finding time to tune into your deeper voice within. You have a choice in every moment. We are free to choose how we see something and how we respond. Episode Timeline: [00:50] Meet today's guest, "Matina Agio, a personal inheritance consultant. [01:43] Matina describes what it means to be an "Inheritance Muse". [03:39] What separates intangible inheritance from pure legacy? [06:28] How did you find yourself on this path? [16:56] How do you navigate inheritance? [19:00] Is Real Estate more difficult to manage than other items of value? [23:32] How often are you working with individual inheritors compared to co-inheritors? [26:35] How do people engage you, and when? [36:44] How do people go about deciding to let go of an asset with family history? [39:35] Matina's insight on 'Legacy'. [45:31] How should one approach inheritance? [48:15] Matina's letter to her kids For more episodes go to BusinessOfFamily.net Sign up for The Business of Family Newsletter Follow Mike on Twitter @MikeBoyd If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!Special Guest: Matina Agio.Sponsored By:The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations. Links:Matina Agio — Matina Agio is a Greek-Canadian personal inheritance consultant. She has been involved with her heritage since childhood. Both her parents had a strong appreciation for Hellenic culture and values. Her father was a banker, earlier Greek-resistance fighter and advocate of Stoic philosophy. Her mother, a Swiss-trained artist was a characteristic aesthete & avid collector.How can the next generation turn pre-contemporary art into meaningful wealth - Simple — Article By Matina Agio

The Lang family recruited Jeff Watters as the first outside CEO to lead Ainsworth Pet Nutrition in it's 5 generations. Sean Lang and Jeff Watters worked together, partnering with a private equity firm to scale the $100m per year business into a $2 billion dollar exit over the space of a decade. This story covers not only leadership succession within a family business but also ownership succession and how the family have stayed together and united around a family office in the absence of an operating company. Standout Quotes: "What's gotten us here, isn't going to necessarily get us there" - [Sean] "As a family, we realized that we would have to make a pretty major change in the journey... And we made the choice to start that journey from family-owned and family-run, to family-owned and professionally-run" - [Sean] "I think in any family business, there's a certain level of distraction or disruption that comes from the family, and if you can move that into the family council and outside of the board room, it seems to be better for everybody" - [Jeff] "The family office is being driven by a stewardship theme; Leave it better than you found it" - [Sean] Key Takeaways: Sean Lang and the Lang family represent a 5th generation business family who owned Ainsworth Pet Nutrition, while Jeff Watters is the first outside professional CEO recruited by the family to lead the business till it was finally sold. The business started small, with deliveries made to "mom and pop" stores, expanded over the years, and all interested family members worked in the factory. After school, Sean started as a sales manager and worked his way up to be president. The family realized that there was a need to make a major change to move with the competition and this would require great talent, moving from family-owned and family-run, to family-owned and professionally-run Although Jeff was in a place where he wanted more in his life personally and professionally, his relationship with Sean was initially not a professional one. Following further interaction, Jeff realized the family was committed to the business, and they were authentic and intentional about their growth. The average tenure of a Public Company CEO is about 4 years, and a Family Business CEO is about 6years, even if you think you're going to be there longer than that, you have to plan according to the statistics. The introduction of professional leadership after 5 generations took some time, however, this had been tried previously and even though it failed, the family had started to get used to the idea. The goal had become to keep the family culture but adopt the benefit of big company thinking and growth capabilities. The notion of an organic, natural but very transparent onboarding process is extremely helpful for professionals outside looking to join a family business. Jeff also encourages professionals considering entry into a family business. You just have to bet on yourself to a certain extent. Once you're satisfied that the other party has high integrity and will deliver on their promises, have the conviction that you're going to deliver on yours, and if it doesn't work out, it doesn't work out. There will be other opportunities. While Jeff's transition into the business had its hiccups, there was a lot of intentional effort from all sides to communicate effectively and create ways to tackle arising issues. This was made easier by the family culture of transitioning where the older generation completely let go of the business which allowed Sean to give Jeff the space needed. Working with a Private Equity Company was pivotal in driving the rapid growth of the company moving from a 200 million-dollar company to a 2 billion-dollar company in 4 years. Jeff describes that the main factor that drove growth while working with the PE Company, was a deep cultural alignment Between the family and the company. It was all about a long strategic view of the business. The family council was started by Sean's father, and one of the policies laid down was that incoming family members needed to work somewhere else for 2 years or until their first promotion whichever came later, before joining the business. In the absence of an operating company, Jeff wanted to still have a family enterprise that could act as glue for the family, and help be a driver for education for the rising generation. This would also foster the creation of mechanisms to share the family history and culture with coming generations. It's not always easy to leave it better than you found it, given the mathematical fact that families almost grow faster than businesses and assets, that means each family member needs to be self-sustaining and look at any help from the family later in life as icing on the cake, not the cake itself. Sean shares he now has more time for family and personal relaxation, while also finding businesses to invest in. Jeff also tries to have fun, works with his wife on philanthropic projects, and serves on a number of boards. Jeff's letter to his kids: Jeff tells them to be bold in the pursuit of what they love, hopefully, it will be something that allows them to leave this place a better place. He encourages them to take a leap of faith, the financial fortune is an opportunity for them to invest in their future in a way that can be fulfilling for them and differentiating for their community. Sean's letter to his kids: The family business cocktail of money, love, and power is trouble. It can rip families apart easily and needs to be proactively managed within the family with the help of professionals. Episode Timeline: [00:52] Introducing today's guests, Sean Lang and Jeff Watters. [02:30] Sean shares the history of the family business. [08:00] What was the reason for bringing in outside leadership? [10:00] How Jeff got involved with the business. [15:18] Were there any surprises while bringing in the idea of getting professional leadership after 5 generations? [20:21] Jeff describes his transition into the role of CEO. [29:30] Discussing the growth of the business, involvement of a Private Equity, and the decision to exit rather than transition to a 6th generation. [42:02] When did the Family Council begin? [52:25] What was the transition like after the final decision to sell the company? [01:00:22] Before the company was sold, there were plans to continue the Family Council? [01:03:51] What Next? [01:06:00] In a letter to your children, what is one lesson or idea you don't think many parents would mention but you consider important to understand? For more episodes go to BusinessOfFamily.net Sign up for The Business of Family Newsletter Follow Mike on Twitter @MikeBoyd If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!Special Guests: Jeff Watters and Sean Lang.Sponsored By:The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations. Links:L Catterton and the Lang Family to Sell Ainsworth Pet Nutrition to The J.M. Smucker CompanyThe J. M. Smucker Company to Acquire Ainsworth Pet Nutrition, LLC, Maker of Rachael Ray™ Nutrish® Pet Food; Company to Explore Strategic Options for U.S. Baking Business

Grossman Marketing Group was founded as Massachusetts Envelope Company in 1910 by Maxwell Grossman, whose lifelong dream was to own his own business. Now, 111 years since its founding, Ben Grossman, along with his brother, David, are the 4th generation of family leadership. Today, the company is a full-service resource helping clients with a broad range of traditional and digital marketing needs. Ben Grossman holds a BA from Princeton University and an MBA from Columbia Business School. Prior to Columbia, Ben worked as a strategy consultant to Fortune 500 clients, as well as started and sold a sportswear and marketing firm. Ben is also deeply involved in sustainability and how it relates to business, and writes and speaks frequently on the topic. Standout Quotes: "Our prices make friends and our service keeps them" - [Ben] "What he was really saying was that life is made up 3 things; Family, Career, and Community, and education has always been of critical importance to our family" - [Ben] "Find a way to generate revenue as soon as possible because numbers speak for themselves and no one will ever question your existence at the organization if you generate sales and gross profit" - [Ben] "Learn the business, understand exactly what's going on in the business, so when you speak up you know what you're talking about, and you're right!" - [Ben] "What our grandfather and our father tried to impart in us is that although business is incredibly important, nothing in business is important enough to ever risk jeopardizing your family relationships" - [Ben] "That sort of value of just 'try and treat people the way you'd want your family to be treated' has been passed down from generation to generation" - [Ben] "Regardless of how successful you are, or your family's been over the years, you need to recognize that markets can change and you must always remain responsive to customers' needs" - [Ben] "Ultimately, we have to be willing to evolve because if we don't evolve, we will get left behind" - [Ben] "Always do right, this will gratify some people and astonish the rest" - [Ben] Key Takeaways: The company has always had a service-driven culture and this has kept the business going for over 110 years. Ben explains that the company had initially started as an envelope company and had also bought up different companies during its growth, with the investment in promotional products being the most notable that boosted growth. Following his education, Ben had decided to step out and gain some experience although he was passionate about finally going back to join the family business. Ben explains that based on lessons from his great grandfather, Life is made up of 3 things, Family, Career, and Community. Education has always been of critical importance to the family. The "Start, Stop, Continue" Review Method: Ben had asked workers to review the company's methods to identify processes that needed to be implemented, stopped, or continued for better productivity. Ben shares that following political engagements, his father moved on from the family business and is fully engaged in public service. He adds that working harmoniously with his brother is aided by the understanding that every win is for the company and not the individual, and also their roles tend to be complementary to each other. Understanding that it was necessary to establish credibility by generating profits immediately after joining the family business, Ben reached out to some prospects and started to achieve his goal within a month. One of the critical values imparted by their grandfather was the understanding that business should never jeopardize family relationships. Another key value learned was the importance of treating colleagues the way family would be treated in a workplace. You need to be willing to adapt to ever-changing business environments and conditions. Ben remembers how the family had always focused on the customer, and that what differentiated their company was the incredible customer service. Highlighting the involvements of different family members in service to the community, Ben explains that service to the community is one of the values that have been passed down each generation beginning from the Founder. Considering the future, the most meaningful investment made in recent times has been expanding into e-commerce. Ben shares he would give his children the same advice he got from his grandparents regarding joining the business, and this is to do what their heart wants to do, follow their career path, and not be constrained to join the business based on the financial implications. From Ben to his kids: Always do right, this will gratify some people and astonish the rest Episode Timeline: [00:49] Introducing today's guest Ben Grossman, and Grossman Marketing Group, the Massachusetts envelope company. [01:40] The history of the Grossman family business. [07:05] Ben narrates how he and his brother joined the business. [11:52] As brothers, how do you get along and what roles do you each play today in the business? [21:54] A listening tour: Using the "Start, Stop, Continue" Review Method. [25:36] Do you have any apparent failures that have set you up for later success? [32:15] Ben describes the family history of service to the community. [37:58] Has the family been intentional about documenting its history? [39:30] How do you pivot and evolve a marketing group like yours into the 21st century and beyond? [43:43] Are you nurturing your children to be the 5th generation of the business or leaving it to them to find their path? [48:35] A letter to Ben's Kids. For more episodes go to BusinessOfFamily.net Sign up for The Business of Family Newsletter Follow Mike on Twitter @MikeBoyd If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!Special Guest: Ben Grossman.Sponsored By:The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations. Links:Business isn’t just about profit – reflections from four generations in business - Ben Grossman my great grandfather’s dollar-a-year check from the US GovernmentLetter the company sent out when he left to serve FDR and my grandfather left to serve in the ArmyLetter my brother and I sent out when our father left the company to serve as Treasurer of Massachusetts 70 years after our great grandfather left for public serviceGrossman Marketing – a century of excellence — Grossman Marketing Group was founded as Massachusetts Envelope Company in 1910 by Maxwell GrossmanBen Grossman — Ben Grossman is the co-leader of his family’s 4th-generation family business, Grossman Marketing Group, where he enjoys focusing on acquisitions and sustainability projects, among other thingsSwagCycle: — SwagCycle is a startup focused on responsibly managing the lifecycle of branded merchandise. When companies rebrand or get acquired, many often dispose of their obsolete branded merchandise. Leveraging SwagCycle proprietary network of partners, SwagCycle make this problem go away by helping companies repurpose and recycle unwanted branded items in a responsible, ethical, and affordable way.

An award-winning professional speaker and author of The Seller’s Journey: A Business Fable about Navigating the Emotional Obstacles to Selling Your Business, Denise Logan has addressed audiences on three continents about the psychology of business owners and how to make it easier when the time comes to let go. Known as The Seller Whisperer, she draws upon a twenty year body of work focused on the intersection of work, money, and meaning and how it is reflected in the legacies of today’s business leaders. She has rightly observed that while work is where we spend the majority of our time, much of it is spent wishing we were somewhere else, doing something else. Divorcing meaning from our work too often leaves us blindly trudging through a mediocre life using money as the miserly arbiter of success in matters of soul and meaning. It leads to an endless chase for more, hoping to outsmart death and desperately prove that our life somehow mattered. Even worse, when work is how we define ourselves and we are faced with job loss or impending retirement, it can seem terrifying. What happens when your old answer to the question “What Do You Do?” no longer fits? If you thought you are what you do, and suddenly you don’t do it anymore, do you not exist? Standout Quotes: "Every family's dynamic is slightly different and always the same" - [Denise] "So as fear starts to escalate, our thinking is disrupted" - [Denise] "The best transitions happen 5 years before someone is ready" - [Denise] "The reality is that every owner will exit their business, voluntarily or involuntarily... so you will either transition to someone or you will leave your business with it being unprepared" - [Denise] "if we look at mortality issues, often the more mortality resistance that someone has , the higher the likelihood is that they will also be avoiding succession planning" One of the questions I start early on with an owner is ''what does work provide for you, beyond the money?... where will you get those needs met outside the business?" - [Denise] "Succession happens at all different ages" - [Denise] "Are we simply creating roles in the business so family members have work to do, as opposed to are they the right people in the business?" - [Denise] "Change is hard at first, messy in the middle and gorgeous at the end" - [Mike] "Transparency always works, it is always better" - [Denise] "The arc of the journey for an owner is the same, whether we're talking about a $50000 hair salon or 500 million-dollar company, the arc of transition that's happening for someone is the same" "Transition will happen no matter what, so the question is 'what kind of transition do you want to have as a business owner?'" "Success is often determined by how prepared you are rather than just letting it be" - [Mike] "Our legacy comes from our daily actions, it is not just the amount of money that we leave behind or the money that we have accumulated" - [Denise] "We can often get completely spun up on what our number is, the number is not the number in the bank account, the number is the number of memories that we have left behind because that is truly how we will be remembered" - [Denise] Key Takeaways: Denise started as a mental health professional and then moved into practicing Law where she started her firm but sold because she lost interest in the business. This prompted her to start a road trip till she was invited to help build a friend's business before the sale, an experience that kick-started her work of helping owners transition during the sale of their businesses. It also inspired her book, "The Seller's Journey". Using the analogy of a fist, Denise likens the fear center in the brain, 'the Amygdala' to the thumb of the hand, pointing out that while the other fingers could restrict the thumb's movements the same way the frontal cortex can restrict the Amygdala, excessive pressure from the thumb or the Amygdala, in this case, can break free of the restraint, leaving the fear to roam free. This explains the chaotic nature exhibited by people, typical of family dynamics. Another description using the hand involves the 5 ways through which fear shows up, the 5 fingers are used to represent them; Fight Flight Freeze Fawn, and Submit. Individually, there are often 2 or 3 of them that function more as natural go-to responses when facing fear, anger, or stress. The anchor, Wave, and Island styles of attachment: An Anchor attachment is someone who can tolerate too close or too far. An Island attachment is the type of person who pulls away or isolates themselves when things get rough. A wave attachment describes a person who reacts to disruption by continually checking on others. It is necessary to identify needs that are met by the business beyond the money because there is concern about how these needs will be met outside the business, and this could often form the basis for the continuous attachment to the business. Addressing the handling of messy parts of the conversation, Denise emphasizes the importance of honesty and transparency in allaying the fears that may misguide people's actions in the family. The 'O-MY' syndrome (One More Year) occurs where a seller repeatedly creates reasons to delay their exit from the business whenever they get closer to the agreed time of sale. This is a signal that something else is going on, a different existential crisis and there are needs to be met. The moment that you cease to exist is when the last person who has a story to tell about you passes. Money matters, but it's not the only thing that matters. There will always be a story that is told about you, the question is "is it the story that you would like to have told about you?" From Denise to her kids: The way you will know that you were loved was by how you were held and how you were cared for, not by what I left you. Episode Timeline: [00:49] Meet today's guest, "Denise Logan" a.k.a 'the Seller Whisperer'. [01:45] An overview of the journey to becoming "the Seller Whisperer". [08:52] Denise's 'fist' analogy in describing the role of fear in the brain. [11:30] The 5 Appearances of Fear. [14:10] The anchor, Wave, and Island styles of attachment. [18:10] Do families typically find you when a transition is already underway or as they're contemplating a transition or an exit? [33:23] How do you handle the messy aspects of the discussion? [45:30] How often do sellers get caught up on a particular figure that they will only sell at? [50:39] Discussing the success of transitions generally. [01:00:56] A letter from Denise For more episodes go to BusinessOfFamily.net Sign up for The Business of Family Newsletter Follow Mike on Twitter @MikeBoyd If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!Special Guest: Denise Logan.Sponsored By:The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations. Links:Denise Logan | Speaker, Author, Consultant — Weaving together her background as a lawyer, social worker and business owner has enabled Denise Logan to deftly guide hundreds of business owners and their professional teams as they navigate the complex emotional journey of selling their business and letting go into their own version of what’s next.New Book: "The Seller’s Journey" | Denise Logan — A new book by Denise Logan Fewer than 30% of all businesses for sale successfully transition to a new owner and those that do typically take more than nine agonizing months filled with uncertainty. The longer a sale process takes, the more stressful it becomes for the owner & the deal team and the lower the probability of success.

Carl Bates is Africa's leading educator, appointer and guide of High-Performance boards. As the Founding Partner of Sirdar, he is world renowned for his practical understanding of governance and is constantly invited to share his knowledge and insight on the subject - in Africa, Sirdar is the largest provider of independent non-executive directors to private companies and family businesses. As a G2 entrepreneur, Carl works closely with his Mother and spouse in his family property business in New Zealand, bringing real world insights to his professional service clients. Carl is particularly passionate about how boards can transform and scale-up privately-held and family companies. Standout Quotes: "There's a difference between craftsmanship and entrepreneurship" - [Carl] "And I like the term 'Contribution', it's all about what we have to give and finding ways of being more effective in that" - [Carl] "I think having a purpose as a business is fundamental to what building longevity in any business is about" - [Carl] "In businesses, we can see a direct correlation between the makeup of the group of people at the top and the financial performance of the business" - [Carl] "It is a privilege that a family has when they're right at the beginning of the journey, and they make the decision to become a family business... and they put in place the structures at that point because it's a lot less emotional to argue about something that is 10 or 20 years out, than being in the middle of that thing in 20 years time" - [Carl] "Families need to define 'well, what does family mean to you?' - [Carl] "The larger the number of beneficiaries of the family, the bigger the governance framework needs to be at a family level" - [Carl] "There's no such thing as an 'Original Mistake', there are so many families and so many boards around the world who have done this so many times before you, that rather than try and make an original mistake, go and see what other people have done" - [Carl] Key Takeaways: Carl recalls he initially had no desire to live in Africa, a few years after this, he repeatedly had cause to travel there on business and realized he had to stay, creating offices all around Africa which help families and companies to develop their boards of directors. Starting University at 15 years and becoming a chartered accountant by 21 years, he had always wondered why even though each generation of his family had successful entrepreneurs, there was no build-up and transfer of wealth to the next generation. Knowing most of his great grandparents personally helped instill values that formed the foundation for the role he currently plays in business generally. Carl shares that the purpose of his family business is giving people a place to call home. Explaining the benefits and process of introducing new family members. Carl notes that the disparity in the energy levels between him, his wife, and other family members, allows for productivity to be maximized in different areas. So often the succession planning is focused on when the person passes away, but if we don't take other family members on a journey of understanding the business over time, when the time comes they won't have the understanding of it to enable a successful transition. The Contribution Compass is a tool used to understand family members as individuals, their personalities, and predict the expected roles they would play in the family. It is also used in business as a commercial tool since there is a direct correlation between the make-up of business leaders in any business and the success of that business. Regarding the formality surrounding the entry of other family members into the family business, Carl discloses that nothing would be gifted and members would have to buy into the business. He also emphasizes the need to legalize every aspect of this entry as he recommends for his clients too. I encourage family members to deal with things when they're not topical because that's when it's least emotional. Regarding planning ahead for families, the best place to start is to understand that being a shareholder doesn't necessarily mean sitting around the board table. It is also important to understand Family Governance from the perspective of defining what family means to each member. The Governance structure is predominantly focused on determining directly family-related issues but the Operational Board side is driven by the underlying Family business. This is where families go wrong; when they cannot differentiate between Family Governance and Governance of a Profit Generation Entity. While sometimes the family traditions do serve the purpose of bonding, in other cases, there is some resentment on the expectations from different family members based on such traditions. From Carl to his kids: It is important to spend time with your grandparents and great grandparents or people connected to them from that generation because there are threads that enable you to understand how your family has developed, and what the core values or cornerstones of success for you family are, through that time of engagement. Episode Timeline: [00:49] Introducing today's guest, Carl Bates [04:04] Carl shares his professional backstory. [14:28] The purpose of Carl's family business. [16:17] Apart from you and your mother, are there other family members involved? [22:43] The Contribution Compass [28:00] In terms of families planning ahead, where do we start? [30:39] Where does the distinction lie between a Family Council and the Operating Board? [34:33] Differentiating between a Family Council and a Family Forum. [36:45] What is one of the biggest challenges that families have when trying to put a governance structure in place for the first time? [38:12] Comparing an Operational Family Business with one that is just "stewarding the wealth". [43:50] How are families celebrating their uniqueness and traditions over the years? [48:50] Carl's letter to his kids. For more episodes go to BusinessOfFamily.net Sign up for The Business of Family Newsletter Follow Mike on Twitter @MikeBoyd If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!Special Guest: Carl Bates.Sponsored By:The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations. Links:Carl Bates — Carl Bates is an entrepreneur focused on creating meaningful economic impact within the countries and economies in which he has the opportunity to participate. Sirdar Group — ‘Sirdar’ is the name given to the lead Sherpa on a mountain expedition. Where others view a high mountain as a great challenge or an insurmountable obstacle, the sirdar sees it as a clear path of opportunity. The sirdar builds the right team, chooses the correct route and knows when to go for the summit.

Nike is the founder and CEO of Nike Anani Practice, Ltd., in Lagos, Nigeria, where she helps second-generation family business members collaborate with the founding generation in an effort to build sustainable family enterprises in the region. No more than 2% of African family businesses successfully transition power to the second generation, and Nike has made it her mission to facilitate this generational merge. With over a decade of experience working with select business families in Africa, Nike Anani helps owners lead their family organizations to long-term impact and legacy. Her clients choose to engage her, not only because of her extensive professional training, but also because of her practical experience as both a business founder and a NextGen. This allows her to uniquely empathise with both generations and act as a connector to the Founding generation. Standout Quotes: "And that's an observation I have of founders and entrepreneurs, they're just amazing people that have an eye for opportunity" - [Nike] "As most founders do, it was about giving me the best opportunity to set me up for success and often in their minds, success is going as far away from the business to get the best experience...so they can come back" - [Nike] "In Nigeria, 90% of indigenous businesses are family businesses, but only 2% survive beyond the founder" - [Nike] "Family businesses are so key to the community, if they keep failing after a generation, then what's that doing to the economy?" - [Nike] "I think that starting from a relatively small base, the best way to build anything is with community, and actually building what that community wants rather than just dictating something that you found off the shelf from another culture" - [Mike] "If you've seen one family business, you've seen one family business" - [Nike] "A friend of mine says whenever you wake up is your morning, some people don't wake up until they're 85, they don't know what they want" - [Nike] "I need to be in the best version of myself so I can serve people to the best of my ability" - [Nike] "There's always something new to learn, we've never arrived, we're just on this ongoing journey of endless learning, in my view" - [Nike] "There's no position that's guaranteed in life, whether it be a position of material success or honor, today you might be celebrated but it doesn't mean tomorrow you will be" - [Nike] "It is important to ensure that people's external projections don't become your internal story, because your story is the most powerful thing that you can give yourself" - [Nike] Key Takeaways: Nike is a 2nd generation family business owner, and she narrates how her father started the family business initially as a side-hustle. Describing events around her entry into the business, she shares the plan was to only stay for a few months in Nigeria, gain exposure to business in general, and move back to the UK eventually. However, she was drawn to the spirit of entrepreneurship there and felt more liberated as a young black female. Nike explains that while her father had expressed general support for her in any field she was planning to go into, she had never expected she would work in the family business. A glaring disparity in the decision-making process between her former place of work and the family business was the time taken which could be much shorter or longer in different scenarios, leaving her befuddled about family business as a whole. This encouraged her to get professional education at the Family Firm Institute in Boston. Employing her knowledge in her family business, Nike started the process of "Governance" which involved her siblings more, intending to avert the typical dissolution that plagued most Nigerian family businesses after the founding generation. Another strategy adopted involved starting the conversation by creating a community called "African Family Firms" for African families facing similar challenges to meet and navigate through these issues. Nike highlights various peculiarities of African families, noting how these have to be put into consideration when trying to find solutions to the survival of family businesses in Africa. You won't know what you want until you come together as a family, have open conversations, and plan for different scenarios. Get clear as a family on who you are, what your values are, the goals of the family, and the purpose of the family business. Emphasizing the importance of continuous learning, Nike embraces the process as a part of being the best version of herself. A significant failure that set her up for success took place in school, where the result she got at some point would not be good enough for the jobs she wanted, and this motivated her to push herself harder than ever before to achieve her desired goal. Nike’s parents impressed upon her certain values described as 4Hs and 2Ps. The 4Hs are Honesty, Hard work, Humility, and Harmony while the 2Ps are People and Places. All of these were included in the family constitutional value system when the formal family enterprise was set up. It is important to understand that while people can project their weaknesses onto you and vilify you, their external projections should not become your internal story because your story is the most powerful thing you can give yourself, and you have to hold on to that story. Episode Timeline: [00:50] Meet Today's guest, 'Nike Anani'. [01:56] Nike's personal and professional background. [08:30] How did the family make the jump from medical consumables to construction and building hospitals? [16:55] How were you inspired to learn more about the Business of Family? [23:00] Since the wake-up call that you received, what did you do about it for your own family or your friends' families? [29:50] Do people document entitlements for kin or rather more of a bloodline lineage? [32:53] Challenges surrounding Real Estate planning in Africa. [39:18] An overview of Nike's different roles in family business generally. [50:15] Has there been a specific failure that you've learned a great deal from? [56:00] Apart from education, what else came through as fundamentally important from your parents? [59:40] Nike's letter to her kids. For more episodes go to BusinessOfFamily.net Sign up for The Business of Family Newsletter Follow Mike on Twitter @MikeBoyd If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!Special Guest: Nike Anani.Sponsored By:The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations. Links:Nike Anani — Nike is the founder and CEO of Nike Anani Practice, Ltd. With over a decade of experience working with select business families in Africa, Nike Anani helps owners lead their family organizations to long-term impact and legacy.Nextgen – the turning wheel | Nike Anani — Nike Anani's clients choose to engage her, not only because of her extensive professional training, but also because of her practical experience as both a business founder and a NextGenBuilding a Generational Bridge in Africa - Women in Family BusinessPodcast: The Connected Generation with Nike Anani — The Connected Generation Podcast with Nike Anani

Aaron Chin is a second-generation business leader and CEO of Organika, a family-led Canadian company dedicated to providing innovative, premium health products to help inspire people to live healthier lives. Growing up in the business motivated Aaron to build on what his father started 30 years ago. Since assuming leadership of Organika, in partnership with his brother Jordan, they have increased business seven-fold and have grown the company into an award-winning, globally recognized brand, focusing on innovation and a vibrant company culture. Standout Quotes: "You start with the mission of the company and that'll help drive your decisions after". - [Aaron] "If you can tweak one little thing in your process that could save you 30minutes...do it". - [Aaron] "You are going to determine yourself, how well you do". - [Aaron] "I really do believe there's nothing like good old hard work". - [Aaron] "My relationship with my brother is bigger than the business... I think I can pass that down to my kids" - [Aaron] Key Takeaways: Aaron's dad had the dream when he moved from Malaysia to Canada to give his kids a chance to get ice cream whenever they wanted. Following the treatment of his kidney stones using natural products, he started the business with a vision to make healthcare accessible for all. Despite the rejection, his father persistently put himself and his products out there, till the business took off. Aaron shares he always had an interest in the family business although his father never tried to impose any expectations to join. Aaron narrates a simple experience where he noticed the boss employed by his father to manage the business got to the office one morning, and deleted all his office voicemails without listening to any one, inciting Aaron's suspicion of the poor management inherent in the business. Realizing the diet differences between the newer and older generation, the company pivoted from mostly vitamin pills to be more involved in superfoods, powders, drink mixes. The surprising eventuality of Aaron becoming CEO in an Asian family where he is the younger brother and always at odds with his older brother, was partly made possible by the family dynamic which started to work out following certain events that strengthened the bond between them. Aaron shares his vision for the company: I want to see us in every single home in Canada. Explaining that his dad wasn't overprotective but rather allowed them to make mistakes, and these mistakes helped them learn how to make fast and efficient decisions. The question: What are you doing about it? If you teach children what wealth means, it's rather thoughtful to leave wealth for them, but if not then it's just an expectation, and things could go wrong. To Aaron's kids: Know the importance of Family because it is more important than even the business Episode Timeline: [00:49] Meet today's guest "Aaron Chin". [01:25] Where did the family business begin, and how do you become involved in this story? [07:40] About Aaron's entry into the business: Was it always an expectation or some other circumstance? [16:09] Describing the business today. [19:55] How did the leadership transition come about? [24:40] Being the younger brother in an Asian family, how did you arrive at the CEO role? [27:15] What sort of investment process did you go through, and how did you formalize the business? [33:33] Would you say the company culture remains unchanged or has it morphed as a result of the impact of Private Equity coming in? [37:45] Aaron shares major lessons learned by trying things and making mistakes at the beginning [38:50] Is there a multi-generational plan to continue the legacy that your father started? [41:03] How do you feel about children inheriting wealth? [42:39] Aaron's letter to his kids. For more episodes go to BusinessOfFamily.net Sign up for The Business of Family Newsletter Follow Mike on Twitter @MikeBoyd If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!Special Guest: Aaron Chin.Sponsored By:The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations. Links:Organika — Aaron Chin is a second-generation business leader and CEO of Organika which is a family-led Canadian company dedicated to providing innovative, premium health products to help inspire people to live healthier lives.Aaron Chin (@organikaaron) Instagram

Mitzi Perdue is the daughter of one family business titan (her father founded the Sheraton Hotel Chain) and the widow of another, (her late husband was the family business poultry magnate, Frank Perdue), and she is also a businesswoman in her own right. She started the family wine grape business, now one of the larger suppliers of wine grapes in California. Mitzi likes nothing better than to share insider tips for successful family businesses. Her family of origin (the one that started the Sheraton Hotels) began with the family business, Henderson Estate Company, in 1840, and her Perdue family started in 1920 in the poultry business. These two families have a combined tradition of 276 years of staying together as a family. Standout Quotes: "The odds of a family business lasting 100 years are 1 in 1000" - [Mitzi] "The families who put a lot of effort into designing their cultures are the ones that survive, the ones that let things happen as they may, that rarely supports keeping the family business together over the generations" - [Mitzi] "70% of family businesses won't make it to the next generation, so if you want your family to last, put a lot of intentionality into letting the family members know from the youngest age that they're part of something bigger than themselves" - [Mitzi] "The biggest reason families don't last is family quarrels" - [Mitzi] "So a big piece of advice I'd have for every family is, deal with the problems, get them out, come to a resolution but don't go the press, don't go to adversarial lawyers" - [Mitzi] "We're measured by what you can give, not what you can get" - [Mitzi] "I don't think you can be happy if you're not part of something bigger than yourself... If you want to be happy, think what you can do for somebody else, if you really want to be miserable, think what's owed to you" - [Mitzi] "In general, your family will be better functioning the more it knows its stories" - [Mitzi] "If your children turn out right, nothing else matters, if your children turn out wrong, nothing else matters" - [Mitzi] Key Takeaways: Mitzi is a part of two multi-generational business families, each of which has lasted for over 100years and over 5 generations. Mitzi explains that a lot of conscious effort was put into strengthening the families over the years, noting in particular one of the strategies being the "Service to the Family" award. Every single family that exists has a culture, but is it a culture that came about by accident or by design? It is critical to be intentional about designing and maintaining family culture as it plays a major role in the success of a family business over generations, rather than just allowing things to happen as they may. People need a lot of guidance to be steered away from selfishness, and that takes intentionality. Separating Ownership and Control helps create a perspective of the family as an entity bigger than any one person, and consequently gives a better understanding of the role of stewardship. Mitzi explains her innovative idea to inculcate the family values in family members, right from childhood. Noting the importance of knowing how to handle family quarrels, Mitzi strongly emphasizes avoiding the press or lawyers but rather encourages outspokenness within the family. Three ways that a family can intentionally stay together: Family Newsletters, Family Reunions, and Philanthropy. Mitzi highlights the positive effects of connecting with both present and past members of the family on the well-being, physically and mentally, of the family. As a personal preference, Mitzi would rather use books as a means to archive family history compared to other forms of technology, as it may be difficult to access the archive in the future if the technology used to archive it is outdated by that time. Mitzi recommends entering a new family with humility, observing them, noting what gains you points and what doesn't, also pointing out that while the two families had very different values, the values were very compatible. Mitzi's letter to her kids: Be generous, be kind, be honest, work hard but be a good steward. Episode Timeline: [00:49] Introducing Mitzi Perdue, to discuss actionable advice on how her family has maintained their businesses and family dynamics for generations. [02:28] Mitzi shares the origin stories of both business families she is a part of. [04:46] What generation are you in each of these families and what generation are these families up to? [10:08] Every family has a culture. [13:22] About the family values and how they are inculcated with other members of the family. [25:53]How big was the business when it went from family control to external control? [34:02] How has the endowment grown to keep up with the growing size of the family? [35:34] The 'What It Means To Be Us' book. [38:35] Do you have a process or value system around how you keep records for the family? [52:50] How was the process of assimilating two different value systems upon joining another family and what differences did you observe? [57:15] Is there a constitution for the family? [01:00:43] A letter from Mitzi to her children. For more episodes go to BusinessOfFamily.net Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter Follow Mike on Twitter @MikeBoyd If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!Special Guest: Mitzi Perdue.Sponsored By:The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations. Links:Mitzi Perdue — Mitzi Perdue is a Businesswoman, speaker, writer, Founder of the Sheraton Hotel chainInternational Hotels & Resorts | Sheraton Hotels & Resorts — Mitzi perdue's father founded the Sheraton Hotel ChainHow to Communicate Values to Children — Book by Mitzi PerdueHow to Make Your Family Business Last — Book by Mitzi PerdueHow to Keep Your Family Connected: Templates, Techniques and Resources for Strengthening Your Legacy - Book by Mitzi PerdueHome Page | PERDUE® ChickenFrank Perdue - WikipediaTOUGH MAN, TENDER CHICKEN: Business and Life Lessons From Frank Perdue - Book by Mitzi Perdue — This is the story of how Frank Perdue built his chicken and grain company from a father and son operation to an international company that today employs 19,000 people and sells to more than 100 countries.