Business Succession Planning
Preserve Your Business
“If I had to select one quality, one personal characteristic that I regard as being most highly correlated with success, whatever the field, I would pick the trait of persistence. Determination! The will to endure to the end, to get knocked down seventy times and get up off the floor saying, ‘Here goes number seventy-one!”
—Richard M. DeVos, Businessman—
Business Ownership and Succession Planning:
“Don’t put all your eggs in one basket!”
Fautores Family Offices is devoted to the family-owned and owner managed business (FOMB)—usually a closely-held company, operating privately and generating substantial sales (some can be in the hundreds of millions or more). The owners typically have their own money at risk and employ their family members, who they may rely upon for critical business decision-making.
Most FOMB organizations are a unique group. They generally have the collective traits of entrepreneurs—they are prideful, persistent, and vital to their communities. They advocate strong family values not only through their products and services, but their work ethic, too. They value the relationships between client and customer, and vendor and employee very highly. Original founders may have a desire to keep the culture for the next 100 years!
What I have described is the typical FOMB organization not only in the United States, but worldwide as well. Unlike large public companies that delegate responsibilities to their various departments and have access to publically-traded markets for financing, FOMB organizations handle all of it themselves. Out of concern for maintaining quality, control, and culture, many consider becoming a publically traded entity as a last resort succession strategy. The buck stops with the owners. Owners must resolve every problem and deal with the family and partner disputes that can, and usually do, occur. This is certainly a lot of responsibility.
In order to successfully preserve or manage their business and protect assets more effectively, Fautores Family Offices uses complex, interdependent assessment factors to help FOMB organizations delegate, diversify, and sometimes outsource some of these responsibilities.
*Against conventional wisdom and statistics, we believe that many FOMB organizations can last for generations to come. We offer our skills, our experience, our systems, and wisdom to any size FOMB organization to help attain longevity.