RECAP: 2019 FOX Fall Rising Gen Forum

Generation Succession

Presenters:
Nate Imfeld, Attorney, Foley & Lardner, LLP
Torri Hawley, Windway Capital, Next Gen

Session Description: 

The speakers explored the good, the bad, and the ugly around succession and generational transitions of power and control within families of wealth. Seventh generation family members discussed their recent generational succession, what prompted the transition, and how they navigated the practical and emotional challenges.

 

“The topic of succession can be a loaded and complex conversation. All succession events involve change and conflict because of the source, and the kinds of conversations that need to be had can create conflict.”
– Nate Imfeld
“Since the family members do not work in the business, it has transformed from a “business first family” to a “family first business.” The purpose of the business is now to support the family, and focus is shifting to how to carry on the business to future generations.”
– Torri Hawley
Key Takeaways:  
  • Family members shared the history of their 145-year-old family business which has seen its share of succession, transition, buy-outs, and acquisitions, now jointly owned by five sisters.
  • Succession in the family business/family enterprise world is the transitioning of ownership from one generation to another, including the shifting of control and reapportioning of financial benefits between stakeholders. These shifts and changes require families and businesses to prepare for and respond to change.
  • Changes brought on by succession can be difficult for a family or family-owned business to deal with while facing death or incapacity, control and power issues, or challenges with their identity and purpose. All of which are navigated through the divergent values and personalities inherent in families.
  • The Kohler family’s 2016 succession (triggered by the death of the patriarch) transitioned leadership to G6, five sisters leading at the board level and included a buyout of a family branch.
  • Throughout the process, there were several major “lessons learned.” First, transparency is crucial. Open communication about business matters can surface potential conflict before decisions are made, and can build trust and openness, providing room for compromise.
  • Second, respect is essential. It is not the same thing as agreement, but failure to show respect can fuel resentment and bitterness.
  • Finally, planning is key. It is never too early to start a conversation about what comes next. The process and discussions are valuable even if the plan isn’t immediately forthcoming.
Attendee Quote:  
“I enjoyed listening to Nate and Torri because they were being very real and I related a lot to what they were saying.”
—2019 Attendee

VIEW THE PRESENTATION SLIDES >
(FOX Members only)