Strong outside accounting and business consulting services are essential to the success of most businesses, even more so when companies are family-owned. Accepting guidance from the cooler heads of a concerned, but impartial firm like DDK can sometimes mean the difference between unsolvable disputes and the smooth transition of a business from one generation to the next.
How important is strong outside guidance? A recent Harvard Business School study found that almost 70 percent of family businesses fail or are sold before a second generation has the opportunity to assume control, with just 10% making it to a third generation of leadership. The causes vary, from sibling power disputes to complex business challenges that family members aren’t trained to handle internally.
DDK helps privately held businesses cope with management and technology concerns, create budgets, and manage staffing issues, cash flow and other resources by crafting and supervising implementation of achievable business management solutions.
Careful Planning/Firm Guidance
Our insightful partners understand the ways in which business and personal issues entwine and create dissension among family members and between family and other staff. We also understand complex financial and legal matters, many of which develop as family businesses grow, issues parents and grandparents never faced when the business was being launched.
When family members or friends are business partners, DDK also can help diffuse tension and potential disputes by drafting shareholder agreements and partnership agreements that define the terms for buyouts in the event of death or disability, limit the power to transfer ownership and provide specific guidelines for dispute resolution.
With DDK on their team, providing guidance in line with their objectives, family owned and closely held firms have a much stronger chance of thriving as they’re passed between second, third and even fourth generations.