Family Business Place Advisory Service
From one family business to another Anita Brightley-Hodges with daughters Olympia and Amalia, working together at Family Business Place
Family Business Place is a vibrant family firm dedicated to supporting UK family businesses. Founded by Anita Brightley-Hodges in 2008 we have become the ‘go to’ destination and resource for all things family business. Fighting the corner of a sector that employs one in three people in the UK our mission is simple: to raise the profile of family businesses, to support them through times of change; to celebrate their achievements; and to network them with each other and to trusted professional advisors. We know that mixing business and family can be a big ask. But the challenges and issues they face are the same in all business families. That’s why Anita and her advisory team have the expertise and experience to help steady the ship and smooth the path. Collaborating with our other specialists we can resolve problems around succession, next generation development, governance, exit, wealth preservation and more besides. Listening. Talking. Advising. Resolving. Supporting. Connecting. Helping business families thrive for future generations is what we do.
Recommendations
The FBP Advisory Team understands the complexities of family ❛relationships within a family business so is perfect in an advisory role to large or small family run companies. Anita has an extensive connection list, and if she sees the potential of a couple of family businesses working together, she will always link them up. Anita's network also includes experienced financial and legal advisers, so she is always able to help you on any issue that might arise in a family business.
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Chairman, 4th generation manufacturing business
I've known Anita for a number of years and during this time she ❛never ceases to amaze me with her knowledge of the UK's family business sector. Her greatest talent is undoubtedly the time and expertise she brings to confidential family business mediation, advice and succession planning. It is here that her insider knowledge, garnered from years of talking to multi-generation family business owners, is fused with discretion and diplomacy as she guides business owners through their options and opportunities. When it comes to the unique world of the family business, Anita is simply the best
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David Philpott - Former Regional Chairman, Institute of Directors
Anita's interpersonal skills have proven to be invaluable to our ❛family business. At a time when it seemed that our succession and family relationships were getting beyond repair she gave us hope that she could help. Her efforts knew no bounds and she has worked tirelessly to achieve what we had thought might be impossible and continues to do so.
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Managing Director, 3rd generation transport company [ 04 ]
advice from the FBP Advisory Team has been extremely helpful. ❛We The had a very long and productive day together yesterday, and made considerable progress. It seems to have been a catalyst in itself, and we have done some unprecedented work in exploring where we want to be, and have arrived at a consensus position - (most unexpected!) As we enter what will be a long and possibly tortuous process, it's good to
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know there is someone to turn to who can help us along that path. 4th generation shareholder in a cousin consortium
with Anita and her team over a number of years whilst I ❛was I worked the CEO of a Family Office and found her to be most sympathetic, energetic and innovative in dealing with the particular challenges we faced. This was most in evidence when we worked together on a project designed to involve younger members of the family in the activities of the Family Office and educate them about the responsibilities they would require to assume as they grew older.
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Mark Mahoney - Family Office Consultant
We were having a very difficult time with my Father who couldn't ❛step back from the business. It was causing real frustration for my brother and I and creating tension between us as a family, to the point where we couldn't even talk to each other without it erupting. A friend recommended us to Anita and she soon became the voice of reason. She got us communicating with our Father and we soon understood why he felt like he did which made it easier to work towards a resolution. If your family business is having trouble, it's best to call someone like Anita sooner rather than later otherwise there might not be a business or a family left to save.
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3rd generation food production business
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What keeps you awake at night? like our father❛son I feel relationship has been lost. I’m happy he has risen to the challenge and taken on the top job of the family business, but at what cost? We need help getting that balance back
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What doesn’t is possibly closer to the mark. And what’s more, others in your family are worrying about things too. Through our conversations with family businesses there are many common issues: • Lack of communication around succession plans • Exit options for the senior generation • Rivalry and tension between siblings, cousins and other relatives • Parents unable to take a step back or to completely let go • Competence and commitment of the next generation • Long term survival of the business in the market • W ealth protection • Aversion to risk in the senior generation v innovation and ambition in the next generation • Pressure from shareholders and partners not involved in the business Yes, it takes time and effort on behalf of all parties, but it is vital to create an honest, open and respectful environment; one that supports and encourages everyone to speak their mind. In order to resolve these challenges, as external advisors, we can mediate with all family members, regardless of role or seniority, to feel empowered to raise issues close to their heart and discuss frustrations they may have.
Opening the lines of communication When things are going well, business is booming, and staff and customers are happy, working with relatives can be a wonderful thing. But when times are tough and questions are being raised, it’s rare that people sincerely speak their minds. They agonise over possible fall outs. They worry about hurting others’ feelings as they fear this may cause bad blood, at work and at home. Any rifts between family members working in the business and those outside of it can also have potentially damaging consequences. What’s needed is a healthy, safe and welcoming environment where the ‘elephant in the room’ can be addressed. Issues need to be swept out from under the carpet and any ill feeling towards other family members must be resolved. Finding harmony, however that might manifest itself, is essential. We enable families to talk to each other; no matter how difficult or awkward this may be. By facilitating an environment whereby everyone’s point of view is heard; gets to have their say in confidence without fear of resentment; with cards on the table, we can begin on the path to resolution and plan for the future. [ 06 ]
SUCCESSION BEFORE I GO MY WILL MEDDLING DAD CHOOSING A LEADER SURVIVAL IN THE MARKET HEALTH SIBLING RIVALRY COMPETENCE OF THE BOARD EXIT PLANS CHILDREN AND COUSINS IN THE BUSINESS INHERITANCE TAX WAGE BILL MARKETS EXIT PLAN SKILLS COMPETITION SHAREHOLDER LOYALTY BEING FAIR TO ALL THE KIDS FAVOURITISM I'M TIRED STAFFING SHORTAGES FUTURE PROOFING THE BUSINESS CONSULTANT FEES TAX BILL PIN DOWN OUR VALUES WHAT DO THE KIDS WANT? WHAT DO I WANT TO DO?
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Got something on your mind? It’s an odd fact of life in a family business that many things are said which mean something completely different. ‘I plan to retire on my 70th birthday’ really means ‘I’ll be coming in a bit later each day but I still want to know everything that’s going on …. Just in case’ When the kids say ‘It’s great having our Dad around so much, we really value his experience’ truthfully they mean ‘We’re in our 40’s and have worked in the business for over 15 years; it’s about time Dad just let us get on and run things’ The same goes for other family members, who will often say a) what they think the older generation wants to hear, b) what they think their spouse wants to hear, or c) the first snide remark that comes to mind for something said last week by their brother, sister or nephew.
remember ❛the I still early days when everyone chipped in and worked through the night packing boxes for that huge order! Now the business has grown to become a well-oiled machine – do they need an old codger like me anymore?
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Unsurprisingly, this lack of frankness even when it stems from perfectly well-meant intentions, creates a host of complications when it comes to managing the family business in a straightforward manner. It also makes it very difficult to work out what is going on in many family business situations. We are great listeners, and because of our confidential approach, families open up to us. We don’t judge, we facilitate sensitive conversations and straight talking that bring challenging issues into the open. Where there is conflict, we seek to bring resolution and harmony.
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Building a shared vision It’s been wonderful ❛seeing the business grow and being able to give opportunities to my three children. I hope they don’t feel obliged to join the family business – sometimes I wonder if they just don’t want to hurt my feelings
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Founders of a family business knew their purpose. They were driven and sold their wares on quality, craftsmanship and service. They traded on the back of a simple handshake. Generations later, it is healthy for family members to re-group, re-evaluate and build a new vision that is underpinned by those original values. They can be shared amongst the family and ingrained in the business. They are, after all, what makes us who we are; the way we do things. We call it the ‘family factor’. Aligning the values of the family with the business is the key to unlocking and resolving issues. Openness, collaboration, trust, flexibility, fairness, inclusivity, leadership, share of voice, truth, cohesion and communication are important in equal measure.
Getting and staying organised Fundamental to the success of the business family is how it is governed and for the family to discuss difficult things in the open. By working towards and creating a Family Charter or Constitution the family can properly and collectively agree a policy that brings understanding and togetherness. It will address everything from ownership and employment of family members, to share transfer and succession. Difficulties that may arise as a business grows in size and complexity, can be perceived, addressed, agreed and recorded in a ‘living document’ that acts as a point of reference and concord. Structure. Consensus. Purpose. External advice. Family and shareholder responsibility. Commitment. Discussion. Counsel. Shared values. All are vital. Creating a Family Charter can be difficult and time-consuming, but it is also enlightening and promotes healthy discussion amongst the family. As your trusted advisors we will hold your hand every step of the way. The process may include bringing a team of specialists together who are financial and legal experts. This will enable all aspects of governance and policy to be covered; all working together with the best interest of the family and future of the business in mind.
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Creating a Family Charter outlines the values and vision of the family business
Perspectives on ownership and control that I work in ❛the Now business, I can see what sacrifice my parents made just to keep it going through the darkest moments. I’ve got big shoes to fill and I hope I can do them proud
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Traditional family firms will often prefer to retain all of their shares for future generations and to protect their family legacy. Contemporary businesses are more willing to offer equity as part of a reward structure to attract the highest calibre of talent or for an eventual sale or management buyout. And some long established family businesses can benefit from an external injection of cash to grow and fulfil their long term ambitions quickly. There are many models available for family members to consider. Shareholders, management structure, fairness, leadership succession, exit strategy, creative alternatives, profitability, stewardship, style, reward, sustainability, process, compromise, collaboration, wealth management. All or nearly all of these will be in the mix, somewhere. With so many ownership options available, and the pressure of family emotions involved, we bring objectivity and the voice of reason. As consultants, we challenge and offer solutions you may not have thought of. What’s more, our close relationships with so many of the UK’s family firms means we can put you in touch with people who have been there, done that and got the t-shirt.
Credibility and confidence in the next generation Every family business needs skilled and talented employees. This becomes even more important for the next generation who want to take up their place in the family firm. Understanding personal goals and aspirations; ‘Do I even want to be in the business?’ – is critical. So too is identifying natural skills. Unlike non-family run enterprises, in family businesses there is, naturally, a finite talent pool. People’s input should be aligned with the objectives in the business, and a personal development plan will help family members to visualise the future by identifying where their skills need to be honed. Being aware of individual strengths and weaknesses will also signpost and clarify how and where real value can be added. Many companies have long-standing employees who have given many years to the business, so it’s crucial that any family members aren’t seen to be ‘given it on a plate’. Key areas to explore are: education and mentoring; leadership development; work experience; business planning and understanding financial responsibility; learning the ropes and starting at the bottom; acceptance of the role of employees; confidence; passion; knowledge; respect; appreciation; humility; values; achievements; goals and aspirations; integrity and sincerity. [ 12 ]
How to identify the next leader in your family business
Look how far we’ve come Anita very obviously ❛'knows' about family businesses and their dynamics, has a pretty encyclopaedic knowledge of the UK scene and can advise on all aspects from ownership to succession planning. But more important than that she clearly 'believes' in them and what they can and should achieve. It makes her a powerful friend, advocate and advisor
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Bill Nichols Deputy Director, Buckinghamshire New University
Our purpose in life, values, hopes and dreams for the future are all wrapped up in our family. Our experiences as founders or stewards of the family enterprise create a guiding force for the next generation. Spending time with our children at home and at work helps them to understand why the business and its future are so important. What we stand for and believe in, and how we act and address our responsibilities at home, work and in the wider community, really does matter.
Do you have an exit strategy At some point, the head of the family business will want to retire or exit. Hopefully, a succession plan will be in place and the next generation of leadership is already helping to run the show or being primed to take over. But what if no one in the family is interested? Even if they are, what if they simply don’t have the skills, drive or passion to assume control? It’s far from a dead end and selling up doesn’t have to be the only choice. You could consider other options: • Appoint a professional management team to run the business • Open it up to the wider family network • Franchising • Employee ownership • Management buy in or buy out • Trade sale • Merger • Family office to manage assets and invest in other businesses Many things will come into play when considering your exit opportunities including: family relationships, skills and aspirations, your Family Charter, funding for retirement, legacy, inheritance tax, due diligence, ‘What If ‘ scenario analysis, wealth management and health issues in the family DNA. As your trusted advisors, and together with our team of financial and legal experts we can take an holistic approach; build a plan together for both the family and for the business. You don’t need to wrestle with this dilemma alone.
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Jason Wouhra of East End Foods is an advocate of good governance, to sustain the family and the business
Next generation wealth transfer Anita is a fabulous ❛connector, who has an incredible ability to set the scene for people to meet, share and engage in a honest and nurturing way. Few people walk the talk like Anita and her family, which gives her a unique and credible platform. Her deep-felt understanding of family dynamics and the importance of philanthropy as a facilitator for connection and purpose makes her an excellent advisor. Finally, Anita is generous with her network and has a profound understanding of making relevant and powerful connections Silja Nyboe Andersen Project Manager at Active Philanthropy
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The much vaunted expression ‘from shirtsleeves to shirtsleeves in three generations’ is supported by statistics. These show that in family run enterprises, 70% failed to successfully transfer their wealth from the first generation, and 91% failed to successfully transfer it to the third. This is not because of poorly performing investment or bad estate planning. It is due to the lack of communication, with 25% of instances of ‘from stalls to stars to stalls’, as the expression goes in Italy, caused by poorly prepared inheritors. In reality, children of wealthy families without the appropriate preparation, can suffer from isolation, lack of purpose, low self esteem, anxiety, and may be prone to addictions including alcohol, drugs and gambling. We can help bring the family closer together and steer a clear path that is fulfilling and meaningful to the younger generation. Their contribution to making the world a better place and living a life of purpose and enterprise, will also help prepare them for the successful transfer to the generation that follows them. We will work with both generations to prepare and mentor you through the transition.
Giving for good The purpose of a family business is to create wealth and a sustainable source of income for family members. It will also contribute to the wider local community by providing jobs and bring about a sense of pride. A further way in which a family business can express its values and leave a lasting legacy is through philanthropy and charitable giving, either by donating funds, time or expertise for the long term. The benefits of altruism are well documented from large foundations to modest but no less important trusts and incentives created by smaller family firms. All of this good stuff makes a huge difference to the lives of those less fortunate. In the family enterprise, grandparents can forge strong relationships with grandchildren. Children are able to appreciate the value of their inheritance and take responsibility for decisions that will positively impact people’s lives. Good giving transcends issues of succession and difficult relationships. Indeed, the effect can be a healing factor and unite the family. We are well placed to advise on setting up foundations and charities. In collaboration with our network of experienced legal and financial experts we can make things happen and do it your way.
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Helen Thomas and son, Guy, at 5th generation Westons Cider: a key employer in the local economy
And so the adventure begins! The best thing about ❛working with my sister? I trust her implicitly. Even though we look after completely separate parts of the business I know that she would step in at any minute and has always got my back. Not many people can say that about their business partner, hand on heart
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Whether you have spent a lifetime building your family business from scratch or have acted as a steward and walked in the footsteps of your forefathers, the time will come for you to leave the day to day running of the business. When all is said and done, this is just the beginning of a new life when you don’t have to go into work every day. There are so many things you can do with your new found time and wealth other than investing it all for the future security of your family and your end of life care. In fact, the future can be as exciting, invigorating and purposeful as you could wish it to be. The hardest thing is to know where to begin. This can be a scary time, but equally, an opportunity to put all of your experience to good use. Think about it?
The list goes on: •H elp educate the next generation and grandchildren about the family business •B ecome a brand ambassador for the family business •F orm a Family Council or create a Family Charter where all family members can contribute • Write your ‘drop dead’ contingency plan and get your house in order. From making a Will to deciding who will get what when you die •C reate a ‘bucket list’ of all the things you’ve always wanted to do •B ecome an Angel Investor and help recharge the batteries of small businesses •C ommission a ‘Living Legacy’ video about the history of the family business •B e a mentor and share your knowledge and experience •L earn to become a public speaker and champion your industry, family business and inspire others •V isit all the places you’ve always wanted to see And of course last but not least, make a real difference; set up a Foundation or Charity to help others and make a meaningful impact on their lives. And that’s for starters. DON’T JUST RETIRE. Talk to us about how you can reinvent yourself and do all the things you never had the time or money to do when you were running the family business. Together through coaching, we can make a plan to re-purpose and energise your role; redefining who you want to be in this latter phase of your life.
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RJ Balson & Son is Britain’s oldest family business after 25 generations
Trusted professional advisor network At Family Business Place we have had the privilege of working with some of the UK’s finest family-owned businesses. What’s more, we know that the complex relationship between family, ownership and enterprise often calls for a small cohesive and like-minded group of professional advisors who can guide and support family business leaders facing difficult decisions. Sometimes you will want to involve advisors you’ve known and trusted over the years who have supported you and your business. Other times, you may want to keep your private affairs very separate. We work with a hand-picked team of experts who can support you in specialist areas:
People
Finance
• C oaching • L eadership training • M entoring • M ediation • F acilitation • B ehavioural psychology • G enetic counselling • A dvisory • Non executive director search • P ersonal branding
• Inheritance tax planning • Pensions • Wealth management • Trust and estate planning • Property investments • Charitable trusts • Business funding and investment • Family office
Legal • E mployment law • S hare transfer • R eal estate • L itigation • C onflict resolution • I ntellectual property • Charities and trusts • Mergers and acquisitions
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Family businesses, where everyone enjoys working together and where there is a great deal of mutual respect for each individual’s contribution... can suffer from a lack of frankness. It can sometimes happen that the bonds of love and respect are so strong that individuals are constrained from saying what they feel, for fear of treading on someone else’s cherished aspirations
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Sir John Harvey-Jones MBE
Family Business Place Advisory Service For over 20 years Anita has guided independent and family-owned businesses, through some of their most exciting and challenging times. From taking them on a journey to establish good governance, to resolving long-standing disputes between family members in the business and mentoring the next generation in preparation for succession. What’s more, her experience in marketing and communications has seen her work with some of the most successful firms around the globe including L’Oreal, Virgin Atlantic Airways, Sony, GE, Boots, Pret a Manger, Zurich Insurance and Whatman (formerly a family business) part of the GE Group If you would like to discuss how Anita and the family business advisory team can support you, your family and your business, get in touch to arrange a confidential no obligation meeting.
About Anita • Graduating from Maidstone College of Art in Communication and design, she is also a qualified teacher and visiting lecturer • She is an entrepreneur and founder of Family Business Place, which seeks to raise the profile and support UK Family run enterprises across all sectors of any size • Anita holds a Certificate in Family Business Advising from the Family Firm Institute of Business Advising, Boston USA • Currently chairman of The Executive Association of Great Britain. Her involvement over many years in the charity sector includes supporting: • In Kind Direct, Centrepoint fundraiser, Skillnet, Missing People, Military Wives Choir, Global Angels • Founder of My Ten Days, helping small businesses make a big difference. The WellGood Campaign for Fields of Life. Anita is a regular speaker at events and chairs round table discussion groups on all things family business. She facilitates sessions at conferences and seminars on the subject. Anita has been interviewed on BBC radio 4’s Today Programme and BBC Radio London as well as being featured in The Telegraph, The Independent and The Huffington Post. Anita was voted one of the 'Top 40 Most Influential Business Leaders' in Kent. She currently works with two of her daughters, Amalia and Olympia, at Family Business Place.
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Anita Brightley-Hodges in confidence 01732 220 120 anita@familybusinessplace.com www.familybusinessplace.com [ 24 ]
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