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Standing the Test of Time

Sustaining a multigenerational business
MS_Standing the Test of Time

Yet espousing corporate values is not enough; leaders must also be accessible and communicate regularly about any major transitions and the company’s well being—and this includes the balance sheet and company worth.

“It’s important to calculate the fair market value of the business,” recommends Vaux. “This should be assessed on a regular basis, preferably by an outside professional.”

While no one knows the ins and outs of a legacy business like the people who have been there for years, their familiarity with the daily operations can lead to blind spots and a failure to recognize new opportunities. Outside candidates or consultants can look at these issues with fresh eyes to explore the pros and cons without bias.

Leveraging Advantages
Whether a legacy company is still owned and operated by family members or not, its longevity certainly offers tangible competitive advantages.

These businesses offer continuity in operations, products, reliability, and strong relationships in every link of the supply chain—and these strengths cannot be matched by newer firms.

Duckwall calls these strengths the “bedrock” of his company. “You’ve paid the price over a hundred years and established your reputation for integrity, fairness, and product quality,” he says. “It works, and it stands the test of time to prove it.”

Making the Transition
No matter how dedicated management and employees are to a multigenerational business, the devil is in the details. Know-ing the concrete facts that will assure continuity of service can make the difference in determining if a legacy business survives transitioning to new leadership.

“It is definitely realistic to believe an operation can endure for decades, but only if care is taken to communicate and execute,” Vaux says. “Vision and mission must be shared by all stakeholders, and all operations must be aligned to achieve the desired future state.”

Maintaining Identity & Brand Strength
Operational considerations and brand-building are key elements in handing over a functional business to the next generation. Strengthening brand identity through innovation and added value is important, but there must be a strong identity to build on first. Knowing there are gaps in knowledge is as important as knowing strengths.

“A long-term survivor will have a business plan to guide a company over time and the ability to generate enough capital through sales and investment to generate repeat sales,” explains Duckwall.

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