Family-Owned Business

Family business is a business that can be controlled by the whole family that can provide significant income to all families who have a large business enterprise, McClaymont, attention to the business sector..

This is the second part in a series of articles that address common problems and issues in family-owned businesses. The articles are based on an interview between Al McClaymont, CEO of Autologica Dealer Managements Systems, and J.C. Aimetta An expert and coach who specializes in famly-owned businesses.


Al McClaymont: Several companies I personally know of have suffered huge troubles that were even irreparable sometimes, both for the company itself and for the relationship among the members involved, the emotional relationshis... Whe a family member decides they want to, or that they need to sell their share of the family business.

J.C. Aimetta: Well, in these cases, the first thing one should think about is how to avoid this actually happening, how to prevent the possibility of this happening.

First of all, we must distinguish between a person who sells because they want to,

from a person who sells because they have to, because they have no choice, because they need the money for an urgent personal situation, an illnes, a child who has a scholarship abroad, or something like that.


In this type of situation, the family-owned business should have a liquidity fund to be avalable, under equal conditions, for all partners to use in cases of personal emergencies. This liquidity fund, generally placed in investment
s that can quickly be turned into cash, implies an immobilization of funds that the family business usually does not want to have. But it is a guarantee, when an emergency situation arises, that prevents someone from being forced to sell their part.


Another thing to consider is that no one can sell unless there is someone willing to buy. Therefore, when someone wants to sell their part, it should be stipulated, written and signed, to whom the part must be offered. Because it is not the same to offer it to a brother, to a cousin, to the company itself

(the company can reabsorb the parner's part), or to a third party. Because when an angry family member decides to sell to someone who is not a part of the family, they are immediately including among the owners a person who is not a family member. In summary: the company stops being a family business.

In the next part of this interview, we'll talk about how a family-owned business can reconcile the interest of family members who work in the company, with the interest of those members who don't.

Author Bio
Al McClaymont is founder and CEO of Autologica S.A. Founded in 1994, Autologica helps automotive, agricultural and construction equipment dealers increase their bottom line through the use of its Windows-based Dealer Management System and CRM tools.
Autologica has a presence in South Africa, the Middle East, Asia Pacific, Mexico and South America.