The Difficult Succession of the First Family’s Business

This is an excerpt from an article Conway Center Co-Founder Bea Wolper wrote for Columbus CEO:

Setting aside politics and conflicts, the process of quickly transferring President-elect Trump’s interests to his children will be difficult at best—especially without the “journey of succession” that needs to occur when a family business transitions to the next generation.

Successfully transferring ownership of a family business is often referred to as a “journey” since it takes time and many unexpected obstacles will likely be encountered along the way. The fact is that the last thing Trump wants is to have the family business enterprise fail.

Although his intent may be the “immediate transfer” of all family business interests to his children, immediate and complete transfer of family business interests usually occurs at death. An immediate transfer would mean that the next generation is faced with the complexities of running a family business without truly learning how to run it.

The lessons of successful family business succession begin with the knowledge that it takes time and effort to properly transfer a family business from one generation to the next.

 

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