We build your leadership bench strength so you can work on the business instead of in it.
We understand your business is your baby. You built it, you grew it, you overcame challenges.
We find leaders:
- Who share your passion.
- Who represent your values.
- Who you trust to do what it takes.
As executive recruiters we:
- We partner with you.
- We delve below the surface.
- We look for patterns of behaviour.
- We discover if the candidate “walks the talk”.
- How ready, interested or capable are they of running the family business?
- How effectively will your children work together?
- Given a choice, would your children work together?
We understand the complexities of family business and create the best option to ensure continued success.
As executive recruiters we:
- Find trusted leaders to mentor your children.
- Do our best to change the statistics listed below.
Family Business Succession
- About 30% of family-owned businesses make it to the 2nd generation
- About 13% make it to the 3rd generation
- About 3% make it to the 4th generation
Source: IFEA & SAUDER School of Business
As a business owner, there are other options to selling your business or closing your doors. By building your leadership team, and operating your company today as it were for sale, you are creating valuable options for you and your families’ future.
The Third Option – By Adrienne Giffen, FEA
As executive recruiters, both myself and Bob Murray, Managing Director of People First Solutions, are personally interested in successful family life, and have seven children between us. Our business is like a blended family. In executive recruitment, it’s not just about finding the right executive—it involves spouses, children, and various other players—and the right placement is about the right choice for the family. We know from experience that when children are neither ready, interested nor capable of running the family business, many owner-managers believe that their only option is to transition out of the business, sell, or close the doors. As recruiters who specialize in family business, we point out that there is a third option, which is to continue to own the business and hire a trusted transition leader from outside of the family to run it.
The transition process is often emotional and complex, as any FEA knows. We view the transition process as a business strategy, not a retirement strategy. With a systematic and somewhat calculated approach to business transition, the owner can transfer relationships and resources to a trusted transition leader or team of leaders. The latter provides a layer of protection for the business if the owner manager is unable to continue working for any reason. Increasing bench strength and diversifying resources can ultimately increase the sustainability and the value of the business over time, regardless of what the family decides to do with the business later on.
For example, we worked successfully with an electrical business whose founder, a first generation Canadian, initially built the business and then transferred ownership to his son. After running the business for five years the founder’s son decided he wanted a more diverse lifestyle than his father had. The son asked for our help in finding a trusted transition leader to add corporate bench strength and grow the business.
The Benefits of Building Bench Strength
- The Owner/Manager works on the business vs. in the business.
- The values and the culture of the business live on.
- The Owner/Manager has new lifestyle options.
- Business can still provide an income.
- Revenue towards the business/family legacy.