The good
part is that it has been a long transition. In fact our
founder Vic Hollar continues to give us good help and advice.
Founders of seed businesses never retire from the
business, but they might retire to something else. That
is what Vic has done by devoting the past 25 years to trading
commodity futures. He did a wonderful job of giving up control
of the business, and I plan to do the same with my successor.
The bad part of transitions from a
controlling owner to a sibling partnership is that it is
impossible to be entirely fair. The three brothers entered and
re-entered the business from different backgrounds and with
different strengths. It took time to find appropriate places
for each of us.
This lack of equality between members
of the next generation is why some family businesses are sold.
The parents prefer to make their estate liquid so that the
assets can be equally divided, dollar by dollar. Others prefer
to divide the ownership and responsibility on an "unequal"
basis for the good of the business. Can anyone plan well
enough and far enough in advance so that the business survives
and grows, yet it shares profits with the extended family?
People often sigh and say "It's just
too bad" when a family business is sold.
I tend to cheer them on, since they have made a decision that
is right for their family. The family legacy has simply
changed from a business entity to another form.
