By Michael L. Fassler, Seth Lapine

In our advisory work with family enterprises, we regularly support families as they navigate the transition from sibling ownership and leadership to cousin ownership and leadership. Among the many transitions in the life cycle of a family business, this stage is often the most complex — and the most consequential. When approached with intention, however, it offers a powerful opportunity to establish the conditions for long-term, multi-generational continuity.

History matters. The ease or difficulty of the sibling-to-cousin transition is strongly influenced by how effectively the enterprise previously transitioned from founder control to sibling partnership. When the shift from single-leader authority to shared sibling governance is supported by clear structures, decision-making processes, policies, and productive communication norms, families are far better positioned for future success. When these elements are absent, unresolved issues often resurface with greater intensity in the cousin generation.

Read more at https://www.thefbcg.com/resource/the-siblings-to-cousins-transition-preparing-your-family-enterprise-for-multi-generational-continuity/