“One thing I learned early on by working for a family business, is that few businesses are successfully passed on to next generation. The founders manage to stay on until they die and their children seldom have the desire, skills, or knowledge of the founder to carry on with the family business. There are exceptions but it easier for the children to take the money and sell the business to new owner(s).”
Yea that’s really sad too. This kid could have taken the business to new heights had he tried. Well you know what they say talent skips a generation so maybe his kids will be sharp as tacks.
If he had the desire he would have taken over the business or became more involved at an earlier age maybe.
To the best of my knowledge, the children of Dave Thomas, Ray Kroc, and others who were founders of fast food businesses never passed the business in it’s entirety to their children. Some children of the founders did serve on the board of directors but never participated in any major way except to draw a paycheck or dividends for their shares.
I watched a third generation company go down the tubes when the new owners (second generation owner’s children) tried to upgrade and improve the business against the advice of long time employees. In their efforts and despite the best consultants money could buy, they stepped on the goose that laid the golden egg. Yes, they sold out the business for a small profit, but it was the employees that had built the company that lost the most.
I still believe at 61 y.o. it is time to start winding down a bit and planning for retirement, not taking over a business. But that’s my opinion given the circumstances in this case.