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'Parting is such sweet sorrow'! a famous sentiment by Shakespeare. How true, and whether in our personal or professional lives parting ways plays out in different scenes. Let the story begin!

Family Businesses are usually built on a common purpose, commercial activities and a web of intricacies, including kinship and history. All merge, converge and sometimes diverge.  

Diverging, the parting of ways! This can be a time of celebration, planned retirement, and popping the champagne bottle. But on other occasions, it is a more tumultuous time. Divorce, internal disputes or partnership breakdowns can bring irreparable damage. Damage requiring professional financial and legal advice to deal with the complexities. 

Parting on good terms. Early Succession Planning is usually at the heart of this scenario. A typical situation, the Business founders are ready to retire and hand over to the next generation. Time to step away, take and enjoy that well-earned retirement. 

This Business has a strong structural framework, formal governance practices, along with backup contingency plans. These arrangements are developed to support what’s good for the Business and family members. Members’ roles, responsibilities and skills are defined and recognised. Importantly, these arrangements are legally sound and documented. 

Parting on bad terms. Business breakups are painful and costly and if you have experienced one I am sure you will agree. Divorce of Business partners, generational conflict and sibling rivalry are common examples. The stakes can be high, and emotions are elevated, particularly when the interplay of professional and personal dynamics clash!  

There have been some spectacular publicly exposed examples, corporate giants in disarray but family Businesses too can experience breakups.  Dissolution and despair are words that come to mind. Professional help and intervention are usually needed in these situations. Legal advice, Lawyers, and financial experts are engaged to deal with the problems and ideally find solutions. 

7 Key Foundations to build harmony.  

1. Succession Planning, start early to ensure all family members are aligned with the Business vision and values. Seek professional help if needed. Importantly, record a legally documented pathway, current and future arrangements. 

2. Separate Business and Family. Have formal Business meetings at the ‘office’ and avoid bringing Business matters to the family dinner table. Establish and respect the roles of each domain. Clear boundaries also help deal with difficult or sensitive matters, such as terminating a family member. Additionally, engage an impartial facilitator to run meetings where difficult or contentious issues are being raised. 

3. Implement Professional Governance. Establish a formal governance structure that can include a family constitution, with a clear process for conflict resolution and roles and responsibilities. Having an independent party involved can add impartiality when sensitive issues arise. 

4. Include all Stakeholders. All interested parties must be included in Business discussions to avoid exclusion of some, misinformation and gossip. Foster open, active channels of communication and bring everyone to the table to contribute. Acknowledge and consider differences even amongst family, no two people are the same.  

5. Professional Development.  Provide opportunities for skills development, training and career aspirations. Cross-training amongst family members to diversify skills can also strengthen foundations. 

6. Mitigate Conflict. Acknowledge that it is not uncommon for family's not to be fully united or in agreement with all aspects of the Business or family life. The key is to mitigate the situation before it escalates. If necessary, bring in neutral mediators to explore solutions before small problems fester to become big ones.  

7. Engage External Professionals. Engage professionals when expert help is needed for any of these Business matters. They provide advice on succession planning, ownership and related matters and can also offer guidance and neutral facilitation when dealing with disputes. With separation or divorce situations, engage legal and financial advisors who specialise in family law and Business valuation. 

Parting of the Ways - take steps now to make it memorable for all the right reasons!