Specialty Manufacturing Family-owned, $13M revenue Business Succession + Leadership Assessment

Sharon (53) and Tom (57) built a specialty manufacturing company over 25 years into a $13 million operation. They were ready to begin planning their exit — but their family situation made it complicated.

They had three grown children. Alex was actively involved in the business. Barb had recently returned after running her own venture. Charlie had no involvement and worked in an entirely different industry. Sharon and Tom also held significant personal real estate — commercial properties leased to the business, a primary residence, and other holdings.

Their overriding concern: treating all three children fairly. But fair, as they would learn, does not mean equal.

The instinct in family succession is to split everything three ways. But equal division would have created serious problems. Giving Charlie a stake in a company he didn’t work in would have burdened Alex and Barb with a passive shareholder. Excluding Charlie from the business — when it represented most of the family’s wealth — felt unfair.

Beyond the ownership question, there were leadership readiness concerns. Alex had tenure but hadn’t been tested in a senior leadership capacity. Barb brought outside experience but was still re-establishing herself internally. Non-family key employees also needed to see a credible path forward.

We worked with the family over 18 months across three parallel tracks:

Leadership Assessment and Development. Alex and Barb completed leadership assessments alongside non-family key employees. This gave the family objective data about readiness, gaps, and development priorities. Individual coaching helped each candidate grow into the competencies the company would need.

Strategic Vision. The family worked together — all three children included — to articulate a shared vision for the company’s future. This gave Alex and Barb a framework to lead from, and gave Charlie confidence that the business would be managed in a way that protected the family’s legacy.

Ownership and Transition Structure. Working alongside the family’s legal and tax advisors, we helped design a transition that was fair without being equal. The business was transferred to Alex and Barb at the lowest defensible value, minimizing tax impact. Charlie was included through non-business assets, ensuring equitable total value without complicating governance.

Sharon and Tom transitioned out of daily operations with confidence that the business was in capable hands, family harmony was preserved, and their financial security was protected. Alex and Barb co-lead the company today. Charlie, fully included through non-business assets, maintains a family connection to the legacy without an operational role.

The Takeaway: Family succession isn’t just a legal or financial transaction — it’s an organizational and human one. “Fair” means everyone is appropriately included. It doesn’t mean everyone gets the same thing.

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