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46 • OCTOBER 2013 • WORLD FENCE NEWS ATLAS WHOLESALE FENCE SUPPLY Barbwire Class 3 Razor Barrier Wire Manufactured in USA Universal Cantilever Rollers Round and Square Rollers fit 3" - 3 1/2" - 4" - 4 Call or Email today for pricing and orders 713/772/5591 sales@atlasfenceco.com An open letter to potential heirs of a family business BY LEON A . DANCO , PH . D . Editor's note: Leon Danco, who contributed many articles on the topic of family-owned businesses over the years, passed away in February this year. He was known as a straight-talking realist when it came to family businesses, especially the issues involved in passing a business from generation to generation. The following article, which was published in the January 1991 issue of World Fence News, is a perfect example. • • • This article is directed to persons who are potential heirs to a family business. But since it also concerns the current owners – the parents – they are free to stop reading if they wish! First, we have to assume that, as a potential successor to a family business, you have lots of drive. You crave responsibility and a chance to put all of your bright new ideas into action. You represent youth at its best: Wanting to do things, different things, and pushing to get them done – yesterday. But there's a chance you also represent youth at its worst: Insensitive, reckless and over-confident. I've met too many heirs who were ready to wrestle their fathers or mothers for control. But be forewarned! If you're itching to fight for control rather than earn it, you will lose. You don't understand your parent's world. You lack experience and you don't have any chips. I've worked with many family businesses, and I think I've seen every form these confrontations can take. Believe me, there's no greater fury anywhere than that of a parent whose wrath has been aroused by an ungrateful son or daughter. I know people like your parents. I know them well. They have discussed problems and concerns with me that they've never even told their ministers. They certainly haven't told you. Yet many of you think you know everything worth knowing about your parents. Well, you are in for a surprise. ASTM fence standards continued from page 12 Your parents' problems are caused in large part by their love for you, because there's a conflict between that love and their valid concern for their own futures. You see, some of you are basically greedy kids. That's a statistical fact, as sure as the fact that some of you are hard working heirs who deserve the legacy your parents' work has built. The problem is that your parents often can't tell which of you is which. They want to be fair to everyone – to you, and to your brothers and sisters. But they are very worried about how you will react to each other, and they are concerned about what you will do to the business that they have built. I've met too many heirs who were ready to wrestle their fathers or mothers for control. But be forewarned! If you're itching to fight for control rather than earn it, you will lose. They're painfully aware that your actions will profoundly affect the business, their retirement and their security. They have my sympathy! I'm not ignoring your troubles. I'm simply saying that there's another side. Your parents are very lonely, very scared, very tired. They are running out of time and don't know where to go for help. And too often, all you do is complicate the problem and make it worse, because you don't take the time to understand their problems. Just try and sit on your brilliant expansion plans for a minute and take a hard look at your parent's problems. Maybe they have to run like hell every quarter just to keep a positive cash flow. Maybe there are political intrigues in the office that are driving them crazy. Maybe their accounts – the ones they have serviced exclusively for 20 years – bring in 80 percent of their business, and they are getting too tired to cover them all. Maybe you and your brothers and sisters and their wives and husbands are always fighting. Maybe they're afraid you can't continued on page 72 Send us your cartoon ideas for Pete and Jake. World Fence News standards have been changed or revised, and there are new ones added. It is important to utilize only the most recent versions of the standards. E-mail Suzanne Daulerio at sdaulerio@astm.org for bulk quantity purchases. For more information, visit www.astm.org. will give full editorial credit if used. Snail mail to: World Fence News 6101 W. Courtyard Dr. Bldg. 3, Suite 115 Austin, TX 78730 or email: editor@worldfencenews.com