YOUR FAMILY BUSINESS: UNDERSTANDING GENERATIONAL PERSPECTIVES TO

SUCCESSFULLY NAVIGATE YOUR TRANSITION

Luanna McGowanPresident, The McGowan Group Inc

Chaos

Family

OwnershipBusiness

Family Business Model

Source: Tagiuri & Davis, 1982

McGowan - Transition

Integrated

Planning

o Gently Cuts

through tough

Issues

o Brings Clarity

o Rich in its

Simplicity

Communicate Align Experience

VisionBlue

Print

Specs

The Diamond Process

• Perspectives

• Assumptions

• Perceptions

What do you see?

Assumptions

Traditionalists Born 1900-1945

• Spend-thrifts • Loyal to institutions

Baby Boomers Born 1946-1964

• Optimistic• Work Ethic

Gen XBorn 1965-1980

• Skeptical• Resourceful• Latch-key kids• Self-sufficient• Resilient• Anti-establishment

MillennialsBorn 1981-1999

• Diversity• Inclusiveness• Realists• Technically savvy

C Generation

• Connected• Community-oriented• Collaborators• Content-centric• Computerized

Typical Objectives Senior Generation

• Maintain economic independence

• Provide for family

• Maintain family harmony

• Leave a legacy

• Protect management and employees

• Maximize value

• Minimize tax

• Maintain control

Typical Objectives Next Generation

• Maintain family harmony

• Be informed

• Sense of “ownership”

• Clear ARRAs

• Decision-making

• Real contribution

• Work-Life Integration

Stories• Sale

• Management Buy-out

• Family Transfer

• Combination

Journey Experiences & Roadmap

Quarterback• Tax• Lawyer• Valuator• Banker• Insurance Provider• Investment Advisor• M&A Specialist• Accountant• Counsellor• Facilitator

Team

• Succession is a process; not an event

• Start discussions early

• Understand different perspectives

• Don’t underestimate emotions

• Open communication is key

• Work with a team of advisors

• Talk to other families about their stories

Alignment