| Press & Announcements |
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| Client Testimonials |
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More than anything else, you almost create a sense of family. I expected competence but did not expect the friendship and warmth received. |
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William G. |
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Everything is handled in a timely manner. Even though I know you are very busy, I never feel rushed or neglected. Most important...you are the experts and I feel I can always trust your advice. |
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Amy W. |
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Rick has always taken great care in our family's accounting. This past year he was involved with our purchase of a business and he guided us through the transaction. I appreciate his personal interest and concern for our family. |
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Daniel W. |
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Don has far exceeded my expectations. He has done a wonderful job of helping me navigate through some very difficult times. |
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Jesse M. |
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Mellott & Mellott provides excellent and timely advice with customer service as its top priority. John is able to make complex tax issues understandable. |
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Vito P. |
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| The Family Business as Seen by a Non-Family Executive Owner
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November 2004
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As a partner in a family business I believe that my perspective is quite different from that of the family owners. Our Firm, Mellott & Mellott, P.L.L. was founded in 1956, and today there are three family member partners who represent the second and third generations.
In many family-owned businesses of the past, ownership interests were available only for family members; “outside owners” were rare. Today, many family businesses not only have non-family members as owners, but have also promoted non-family members to President, Chief Financial Officer or Chief Operating Officer. Non-family executives bring a unique perspective that differs from family members who live, eat and breathe the “business” due to the fact that they have been exposed to it from an early age. Many family businesses require the “next generation” to first, work outside the Company to become exposed to the “outside” business environment and second, to work in a variety of lower level positions within the Company to learn the mechanics of the family business from the ground up. For these reasons and others, non-family owners help fill the void which is many times created between generations of the family As one of the non-family partners, I am able to bring to the partnership the same drive and initiative which is expected from the family and also to bring a balance that is independent from past and present generations. Non-family owners have a financial stake in the business which motivates them to succeed and provide insight which is more unemotional, a key characteristic needed to ensure continued success.
One of the most critical issues a family-owned business faces is the uncertainty involving continuity and leadership caused by the exit of the founder or the older generation. At Mellott & Mellott, P.L.L. we initiate conversations regarding this issue with our family owned clients and strive to help answer questions such as “will the business stay in the family, and if so, who will lead it,” or “will there need to be a sale in order to pay estate taxes” or “will the business cease operations?”
Preparation and planning for these issues should start long before the transition process needs to occur. A strong exit strategy and transition plan is imperative to ensure a smooth transfer of ownership and ultimately continued business profitability and success. The inclusion of non-family members in this process can, in many cases, help provide continuity and objectivity dearly needed in this transition.
Many succession strategies exist to assist in the transfer of ownership and leadership whether it is to the next generation or to non-family members. Having a team of qualified advisors is immeasurably valuable in planning and implementing the right business succession strategy.
The Goering Center and its “Next Generation Institute” program, has provided our clients, family members, and non-family members, an outstanding learning experience by developing the knowledge and skills unique to family business leaders.
Skillful and knowledgeable non-family owners/executives, given the opportunity, can provide an invaluable resource for the family business to ensure its continued existence and growth.
By Richard J. Rumpler, a partner with Mellott & Mellott, P.L.L. |
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