So the concept of a family business is a way of life for me. But based on economic and social forces, this lifestyle may be coming to an end. The answers to several key questions are worth considering for any family business owner. In many industries, revenue has not grown but expenses keep increasing. The resulting profit squeeze pressures management to act.
Consolidation is an option that produces quick results or, at least, the perception of improvement.
Companies attempting to ensure their future buy out others, or merge with competitors in what were once considered unholy alliances. In this acquisition mode, the family business offers buyers both market share and revenue, back-office consolidation of costs, valuable employees and intellectual capital. A family business nearing the end of a generation of management is an ideal takeover target. This is the greatest transfer of private wealth that has ever occurred. All this money leads to more choices that provide greater freedom.