Dan Frosh is the director at the Merrill Center for Family Wealth. He works with enterprising families to navigate the complexities of wealth and family dynamics, aiming for multigenerational success. A trained attorney, Dan has previously served as a senior advisor at Cambridge Family Enterprise Group and writes and speaks internationally on family enterprises and family wealth. He is the co-author of an upcoming handbook for advisors on business families and family businesses.

SHOW SUMMARY 

In this episode of Disruptive Successor, host Jonathan Goldhill is joined by Dan Frosh, Director at the Merrill Center for Family Wealth. The discussion focuses on preparing for the transfer of ownership to the rising generation in family businesses. Topics include the importance of aligning on a family vision, developing the necessary skills and knowledge for future owners, and navigating governance structures. Dan shares insights from his experience and co-authored book, providing valuable advice for family business leaders. The episode concludes with the significance of collaboration and holistic planning to ensure smooth ownership transitions.

KEY TAKEAWAYS

• Family Business Succession Planning: Importance of preparing both ownership and leadership succession in family businesses.
• Role of Next Generation: The Significance of the rising generation in creating and driving the vision for the future of the family business.
• Governance Essentials: The need for appropriate governance structures that evolve with the business through different generations.
• Core Skills and Education: Developing financial literacy, understanding business operations, and governance knowledge are crucial skills for the next generation.
• Collaboration and Communication: Vital role of clear communication and collaborative decision-making between generations in ensuring smooth transitions.

QUOTES

• "What hat are you wearing in each meeting as a board? You know, when the board meets, you put on your board hat and you think of it as a board member on a day-to-day basis. You're thinking of it as a family, a family employee. You're both a family member and an employee."
• "Make sure that the agenda is clear. What hat you're wearing and what type of topics and issues you are talking about during that meeting."
• "Both generations need to be moving together in this process... If one runner is just standing still waiting for the baton to come, they're going to get passed immediately."
• "Collaboration is super key for smooth ownership transition."
• "Where you see senior generation family members who are reluctant to bring the next generation into the discussions... adopting this mentality of, 'I'm the owner, they're not an owner yet, so I will decide and I will tell them what will happen.'"
• "You need each one of them—business coach, wealth manager, family wealth manager, lawyers, and accountants—to really be successful."
• "Aligning on the vision becomes really important as well... they're inheriting or they're being gifted an enterprise that they might not totally agree with."

Connect and learn more about Dan Frosh.
https://www.linkedin.com/in/dan-frosh-92759b9/

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