As the Great Wealth Transfer continues, many business owners are facing a difficult reality: None of their heirs are interested in taking over the family business, leaving the owner with a choice between selling their business to a nonfamily member or liquidating.
This reality may come as a surprise to some owners, as they assumed that their children or grandchildren would naturally jump at the opportunity to take over the family business. Other owners are not at all surprised because their heirs already have careers outside of the family business.
My story provides a real-life illustration. My grandfather — “Gramps” — founded an advertising business in 1940. The business thrived under his leadership and provided handsomely for him and his family. Two of Gramps’ four sons worked in the business while the other two chose other careers. But not one of his grandchildren chose to pursue a career in the family business. Sadly, the business failed to make it to the third generation…