In some cases, the difficulty to ensure sustainability, both by the lack of successors ready and motivated by a family dispute between partners or the risks associated with changes in technology in every sector and a lack of confidence in the future, has favored the emergence of companies, family offices and businesses in the capital interest purchase the family business. This is a case where the company owner had decided to sell some or most of the company.
However, the decision to sell the family business is not easy. On the one hand, selling the company to cope with survival, while you may get a significant amount to the sale. However, we must assume in many cases, especially the founders and family members working on the emotional cost that the company’s sales, how do we judge in our society (the whole family, company employees, suppliers, customers)? What do we do from now? Are we ready to leave to become entrepreneurs?
Statistics show that 40% of cases the family has a high emotional cost to the company’s sales. Selling the company was involved in many cases of identity crisis and a strong sense of loss. Also, we are experiencing a crisis of professional, personal and psychological. Indeed, for years there has been an activity in which a person has become an expert. Has also taken significant challenges and business challenges. In addition, exercises leadership over the years to strengthen self-esteem and self-image. But suddenly stop doing all of that to which one has been prepared without the intervention of other activities that will replace the short term with the same satisfaction.
On the other side of people and their self-esteem is strongly associated with the company and related activities, relationships with banks, customers, suppliers, business associations, Also, as the employer assumed the functions of social responsibility and contribution after sales blurred. The challenge is presented because it is important. Involves making the transition into new roles, take the sense of loss involved in the change of role. Following the sale of the family business has grown in Spain the concept of the Family Office. This new concept highlights the growing role in the household of a family legacy in the legacy of family enterprise.
Likewise, it also reflects the transition of family business related to corporate, professional and business into a family connected to a mainly non-business asset, whether real financial or real, and even with non-majority in the original company. However, the skills and competencies that serve to build a great company and great wealth is not the same as those used to preserve it. Indeed, the reality is that family wealth had a very similar evolution with the family business. According to American Family Wealth Counselors, 65% of America’s richest families lose some assets by the end of the second generation, which has been passed down from generation wealth creators. And what is more surprising: 90% richest families lose their assets at the end of the third generation.
Having a Family Office must have the support of specialist financial and taxation which in some cases it may allow family members but in general, family activities are significantly reduced. Although it is clear that retain an activity of corporate governance and family governance at board and family council, the reality is that the role of the family become less challenging than I expected corporate management. their company, however, some families have sold committed to continue to develop entrepreneurship and promoting new business.
This is achieved pleased with his team, promoting aggressive goals and create the awareness that it is possible to achieve any purpose. And habits are a number of very effective: they have the ability to think in disciplined manner with continuing analysis of their real-life situation, no matter how hard. They are very determined to do whatever it takes to achieve the best results in the long term, self-criticism often made about themselves and the organization and assume responsibility without blaming others, bad luck or external factors for their problems.
Factors promoting entrepreneurship
First there is the example of the father or grandfather as an entrepreneur with five virtues “ELISA” identified by Miguel Gallo: excellence, perseverance, initiative, simplicity and savings.
Second, parents who have encouraged savings, challenges and challenges on their children, imagination and creativity, innovation, before listening, respecting other people.
Third, by encouraging the individualization of the next generation assumes the right to express disapproval, supporting certain physical distance (on a holiday to attend summer camps and courses in English, on holiday or working practices in other companies).
Fourth, encourage them to conduct entrepreneurial activities.