Reply To: After integrating a family business, should the former owner remain or not?

#112447

Rochelle Ramos
Participant

Difficult decision either way. If you hold onto the owner of the family business, you have to consider whether or not they are the right person, and in what capacity, to move the business in the direction the Buyer wants. I’ve worked with owners that had a difficult time stepping down from that role and giving up control to another individual. Where I’ve seen success is when a contract was in place to keep them on for a period of time, clearly outlining their new job title and responsibilities and where they where seen supporting the new decision makers. If they were successful in owning the company, and have a lot of long-term key people that have supported the, you need to tread carefully in not upsetting those key people. Pushing out a good owner too soon might cause others to leave, disrupting the plans for the future.

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