ownership

There is careful planning involved at every stage of the business life-cycle, such as launching new product lines, entering new markets and moving into adjacent industries. An owner-managed business would be adept at managing such transitions, and the rigorous planning that precedes them.

Why is it then, that a different logic should apply when faced with the question of planning for succession to the family business?

For many, it’s the culmination of a lifetimes work. You’ve sold your business, the deal has completed and a large amount of cash has landed. Where do you go next?

At a family business conference, several years ago, I had the good fortune to hear speak the senior family member and then president of the fourth generation Italian fashion house, Ermenegildo Zegna. In reply to a question on where he spent his time, he identified three areas of personal priority.

Picture yourself as a successor, recently arrived in a foreign market with no clear job description, no clarity on why you are there and a suspicious local management team. Your brief is to 'Find your own way and make a difference' in a company with €1 billion plus sales and a track record of minimum active family involvement.