What is Your Company Worth? Factor 4: Family Members

Family businesses are rewarding, but family members in key roles can scare away buyers.

• High-risk positions: Sales, customer service, accounting, finance, and operations handle customers and money.
• Even trusted family members may not transfer loyalty after a sale.
• Buyers focus on capability and commitment, not last names.
• Planning backups and evaluating long-term fit for family members is essential.

Think like a buyer:

• Identify secondary contacts for top clients.
• Place the best talent in key positions, regardless of last name.
• Make tough personnel decisions, family included, to protect the business and maximize its future value.