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 5080 N. 40th St., Suite 235 Phoenix, AZ 85018 602.468.9667 cfg@cfgllc.com |
QUIZ
A Family Business Assessment Inventory
Make a copy of this Family Business Assessment Inventory for each of the stakeholders who will be involved in the planning process. Ask each individual to complete the questionnaire independently. Compare your answers to determine the areas where you need to focus your attention or clarify issues.
| Will you keep or sell your family business in the future? (Check one answer each for questions 1 and 2) |
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| 1. If you plan to "keep" it, how will it be owned? | |
Active Family Only |
__________ |
All Family Members |
__________ |
Key Non-Family Executives |
__________ |
Combination of Above |
__________ |
Other (Trusts, ESOPs, etc.) |
__________ |
| 2. What obstacles do you foresee that will influence your decision? | |
Ownership conflict in future generation |
__________ |
Growth in company value versus other investments |
__________ |
Family need for secure income/asset diversification |
__________ |
Threats from competitors |
__________ |
OWNERSHIP SUCCESSION |
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YES |
NO |
UNSURE |
|
There is a written ownership succession plan and timetable in-place that places control of the company in the hands of the next generation who are active in the business. |
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Those who are active in the business will share ownership with those who are not active. |
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Our family has discussed ownership succession as a group. |
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The "senior" generation has begun to transfer shares to the next generation. |
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The "senior" generation has some concerns about future ownership of the business. |
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| MANAGEMENT SUCCESSION | |||
| There is a written management succession plan for the day-to-day operational control of the business. | |||
| Do you expect the next generation of the family to manage the business? | |||
| If you answered YES to the last question: | |||
Will more than one of the next generation be in the business? |
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Is it clear who will be the next leader? |
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| Are there questions about the next generation's capability? | |||
| Are there concerns about the next generation's commitment or work ethic? | |||
| If you answered NO to the last question: | |||
| Will the business be sold? | |||
| Would hiring non-family management be preferable to sale? | |||
| COMMUNICATION/CONFLICT RESOLUTION | |||
| Our family meets several times a year to talk about how things are going. | |||
| There are deep conflicts in our family which have caused family members to cut themselves off from each other. | |||
| Our family openly expresses differences of opinion. | |||
| We are able to resolve our major conflicts and differences. | |||
| We have a clear process for making different types of decisions. | |||
| BUSINESS PARTICIPATION | |||
| We evaluate clearly and objectively the performance of family members in the business. | |||
| Women participate in the business with equal opportunities. | |||
| Family members feel they are treated fairly in business-related matters. | |||
| Family employees know where they stand in the business, including limits and opportunities. | |||
| Family members in the business have clear responsibilities and roles. | |||
| OUTSIDE ADVICE | |||
| The business is able to hire and retain non-family managers in responsible positions. | |||
| We listen to and consider new ideas from our younger generation and outside managers. | |||
| We share our planning with nonfamily managers. | |||
| Outside advisors meet with us regularly and have been willing to give us "bad news." | |||
| GENERATIONAL CONTINUITY | |||
| Offspring have been able to learn about the business from their parents. | |||
| There has been some discussion and planning for the possible roles of heirs as they enter the business. | |||
| Heirs have had a chance to work elsewhere. | |||
| Offspring feel that plans for the transition of business ownership are fair. | |||
| Offspring have opportunity to influence the future of the business. | |||
5080 N. 40th St., Suite 235 Phoenix, AZ 85018
602.468.9667 800.422.3883 Toll-Free
602.468.9704 Fax
cfg@cfgllc.com
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