Time passes.

Fast forward twenty years.
It is quite likely that the same organization is in place, unless their CPA had told them to make changes along the way to save taxes or their lawyer had had them reorganize to address liability or other issues.

Unless there had been some immediate benefit or threat - they were usually still organized the way they were originally organized.

Now that twenty years have elapsed, it's very likely that the next generation of has joined the company and wants to share in its growth. After all, if they and their spouses are going to commit to the future of the organization they want to be sure that their efforts will be rewarded, now or in the future - or both.

But no one knows how. After all the business is still organized the way it was organized. The senior generation has not spent any time considering the alternatives for shifting the growth to the next generation through clever planning strategies.

They don't want this to be their legacy so they try to keep the subject at bay with, "someday this will all be yours" and try to change the subject.

And they know of other companies just like theirs where everyone is so happy and seem at peace with their plans for the future - everyone is on board with whatever has been decided and they are thriving.

Maybe they should get the name of their attorney, but no - that would mean they would have to admit to problems and tell this stranger the details of their business.

Neither of these alternatives work well for them. It's nobody's business and anyway, "our business is different."

So they do what most of us try to do when confronted by something too painful to face up to, they take the wait and see approach.

Maybe this will blow over.

After all, when they were in their twenties (or thirties or forties) their dad's position on the matter had been "Someday it'll all be yours!" and that had worked out - as seen in perfect hindsight.

They had not been willing to rock their boat and their spouse had been willing (or so it seemed) to go along with the decree from above. They had waited and now they were the owners of the business and so the 'wait and see' strategy might not be a bad one.

Continue To The Article's Conclusion...

And be sure to read the article, "Honesty The Best (Family Business) Policy" reprinted from the National Hardware and Lumber Association Journal.