We look at the three hardest things for family enterprises to do and why the study of complex adaptive systems gives us insight into them.
“The beginning of wisdom is the definition of terms.”
Because of all the constituents in a family business, there are often times so many dimensions at play in any matter that dissecting what is actually occurring is incredibly challenging. Instead, models like the Three Circles, Four Rooms and Five Capitals arm us with a set of lens by which one can interpret the circumstances presented.
It’s not just that a family’s assets have to grow at a steep rate over time – easily 9-10% or more. It’s that there really is only one variable within the family’s control – and it’s a complicated one
The locales that families build their wealth in are often times closely intertwined with the family’s identity and narrative. Yet like all considerations for a family office, the choice of geography is an important one, and importantly the ‘default’ answer should not be immediately adopted simply because it is the default.
You Don’t Have to Sell Just Because the Party Might Be Ending – Exiting is More Complicated Than That
There is a piece making the rounds on Bloomberg (” Family-Owned Businesses Urged to Sell Before the Party Ends”) this week saying that if you have ever contemplated selling your business now is the time to head for the exit.
Our caution would be simply that of the zen master – ‘we’ll see.’