Family business advisor

What this seat actually does

A family business advisor works on the shareholder group rather than the company: siblings with different needs, a generation that works in the business and one that does not, an owner who cannot decide whether to sell or hand over, and the long-standing disagreements that a transaction converts from background noise into a blocking issue.

They also handle succession as an alternative to sale, which deserves to be evaluated properly rather than dismissed. Selling because the next generation does not want it is a decision; selling because nobody asked them is an accident.

When you need one

Before a process starts, and ideally before the family knows one is being considered. Once terms are on the table, positions harden and every conversation becomes a negotiation.

How they charge

Retainer or project fee for a defined program of facilitation and governance work. Not contingent on any transaction, and you should confirm that, because an advisor paid on a sale is not neutral about whether you sell.

What to ask before you hire

• Do you earn anything if the family sells?
• How do you work with a family member who does not want to participate?
• What does the first ninety days of this look like practically?
• Have you had a family conclude that they should not sell, and what happened?

How to compare candidates

• Compensation neutrality first. This seat is worthless if it has a preferred outcome.
• Facilitation skill outranks technical knowledge here; the technical work belongs to counsel and the tax advisor.
• Ask how they handle the family member who refuses to attend, because there usually is one.

The mistake owners make

Running the family conversation and the sale process at the same time. The family issues then get resolved under deal deadlines, which is the worst possible condition for decisions people live with for thirty years.

What this is not

Not your exit planner, though they should be working together. Not a therapist, and not your lawyer.

The Institute accepts no payment from any advisor, takes no fee tied to any transaction, and does not place or refer professionals for compensation. This entry describes a role, not a recommendation of any firm.