To sell or not to sell: That is the question

ffanlnr, SHnxespeene's melanllcholy Dane, vacillated so long trying to make up his mind about whether to move forward with his plans that his indecision finally threw the entire kingdom into turmoil and brought about his own death.

In my consulting practice, I often see family business owners struggling with their own and other family members' emotional ambivalence over taking the difficult step of selling the business. Although I haven't yet seen this emotional ambivalence lead to death, I've seen it result in turmoil, protracted agony, significant loss, and a tortured legacy that ends up negatively impacting many family members and employees.

Owners who have spent considerable time and energy building their businesses are usually not emotionally prepared to sell. They and family members-even members not directly involved in the operation-have invested considerable identity in it. I've often heard an owner describe their businesses as their "baby." Understandably, when the time comes to give it up, an owner wants to leave the baby in the right hands-the hands of someone who, among other things, will pay the right price, take care of employees, grow the business, and honor the seller's legacy and connection. Of course, this ideal buyer probably doesn't exist, and holding out for such a buyer can become an excuse for inaction.

Selling a business is like facing the empty nest, but more difficult. As parents, we know years ahead of time that our child will someday leave and we spend much of our time preparing for it. Most family-business owners. however, assume that the business will always be, if not in their hands, at least connected to them in some meaningful way. For this reason, anticipating the process of selling long in advance helps prepare for when the time finally arrives. But powerful emotional forces prevent most families from doing this.

The importance of alignment. Like the empty nest, selling the business can feel like a personal crisis, a tremendous opportunity, or both. If selling the business is the best option to pursue, all family members should align behind this as an opportunity. If they fail to align, the ambivalence, never directly addressed, plays out in acrimonious and never-ending disagreements about the details of the potential sale. When this happens, the sale will be either completely undermined or if it does go through, it will very likely result in post-transaction bitterness and resentment and a haunting sense of loss.

Just as clear, consistent communication between family members is essential for operating the business, it is also essential in the final stages of the business. The same factors that can impede communications during any part of the business's life cycle can interfere toward the end. Family business leaders, used to being decisive and action oriented, are often better at making decisions than at promoting discussion and communicating the right things to the right people.

Differences in alignment can also occur between various individuals or group within the family, between generations, between active and inactive family members, or between different branches of the family. Each of these groups and members within groups will have different perspectives on the value of selling the business. Communicating to all in the same manner may not address their concerns about a sale.

In the powerful and shifting realm of emotions, maintaining firm alignment requires an ongoing process. Once the sale process has been launched and the search for a buyer and subsequent negations unfolds, families should hold regular family update meetings. This not only reassures family members and helps craft an ongoing consensus, but sends a clear message to the family, employees, and potential buyers that an orderly process will ensure that everyone'sbest interests are being addressed.

Dealing with grief and loss. If grief and loss were not inevitable parts of our existence, we probably wouldn't spend so much time and energy trying to avoid them. Recognizing what the sale of the business means in terms of loss to each family member is the first step toward managing these feelings. Some family members may fear that without the glue of the business, people will drift further apart. Others, for whom the family business provides an important part of their identity or meaning in life, may feel like they're losing part of themselves. Others may fear for their economic future or, even more powerfully, for their children's economic future.

I help people manage these fears by reminding them that while the sale represents the end of something, it also marks the beginning of something else. I often advise people to retire to something, not from something, to develop a vision for the future. It helps to remember that loss paves the way for something new, such as a new asset, which may require a different kind of energy, interest and attention.

Family members who fear the loss of cohesiveness may wish to form new collaborative relationships with each other-working to benefit their communities, establishing a shared philanthropic venture, jointly managing a portion of the assets from the sale, or continuing to hold regular family retreats. Re-visioning the future can be useful (or even necessary) project for one person or for the entire family.

Farewell rituals can also help family members say good-bye and free them to move forward. Whether it's a raucous wake, a farewell cruise, a solemn retreat, or a privately published commemorative book, a ritual or project honors the importance of the past and the present, and helps prepare for the future.

When emotions and logic work together, they create an energy and synergy that make for successful family business. But when they clash, they are like the collision of high and low pressure systems that create tornadoes and hurricanes. When the timing or circumstances for selling the business seem right, or even imperative, but the fear and loss of grief prevent the familyfrom following through, the result can be catastrophic. Ironically, years later, the end result is the same whether the transition goes smoothly or disastrously: The landscape will have changed and something new will have grown.

Change, loss and renewal are inevitable. The crucial difference is how families go through it. Recognizing, addressing and honoring the powerful feelings that the sale of a family business evokes helps ease the most difficult, yet natural, of transitions.

- Bernard Kliska is an associate of the Family Business Consulting Group, Marietta, Ga. He can be reached at (800) 55 1 -063 3 or kliska@ efamilybusiness.com.

Reprinted with permission from The Family Business Adyisor, a copyrighted publication of F'amily Enlerprise Publishers. No portion ol this article may be reproduced without permission of Family Enterprise Publishers.

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Zeeland Moving Hamilton Truss Plant to Larger Facility

Zeeland Lumber & Supply Co., Zeeland, Mi.,is relocating its Hamilton truss division to the former North Pacific Group facility in Wyoming, Mi.

The larger space offers room for increased production and addition of up to 40 jobs in production, design and sales over the next three to five years.

A showroom will be maintained in Hamilton, Mi.

Zeeland merged with Hamilton Lumber & Truss in early 2009.

Masonite Snags Lifetime

Masonite, Tampa, Fl., has acquired the assets of 63-year-old interior flush door manufacturer Lifetime Doors, Farmington Hills, Mi.

"Lifetime is a natural fit for Masonite. Lifetime's geographic coverage, along with strong customer relationships, will complement Masonite's operations and create exciting new opportunities for our customers, employees and suppliers, and enable Masonite to continue delivering on its strategic growth initiatives," said Masonite executive v.p. and chief operating officer, Larry Repar.

Lifetime president John Hauss will remain with Masonite in a senior advisory role.

Mill Finds Taker in Russia?

Equipment from Morgan Lumber's shuttered sawmill in Bingham, Me., may finally have found a buyer-in Siberia.

"I don't like businesses being sold overseas myself, but that's where the market is," said owner Tom Morgan. "It's been real hard to sell it because nobody in the domestic market is expanding their business; the housing market is so slow."

Closed since May 2006, the 28,000-sq. ft. mill produced framing lumber. Morgan said that if the Russians buy the equipment, they would disassemble "everything from the cement up," ship the parts overseas, and reassemble them in Siberia because "it's where the forest is."

Asked if the mill might ever reopen, Morgan said, "I'd like to run it, but it's not going to happen."

GAF Rebrands CorrectDeck

GAF Decking Systems, Wayne, N.J., has consolidated its decking and railing products under the Duralife brand.

CorrectDeck CX has been renamed the Duralife Siesta Collection to stress its ultra-low maintenance composition, "allowing homeowners time to take a 'siesta' on their deck rather than worrying about maintaining."

CorrectDock is now known as the DuraLifeDock Collection, and CorrectPorch as the Duralife Porch Collection.

The GAF Decking System lineup also includes the Duralife RailWays universal railing system and Duralife Natural Grain Collection. The latternatural grain composite decking at a lower price point-was introduced earlier this year, after GAF discontinued its CrossTimbers composite line.

Galveston Lumber & Hardwafe CO., Galveston, In., expects to close by the end of the year due to the economy.

The business, owned by manager Toney Robertson's family for the last 50 years, dates back to at least 1899.

84 Lumber reopened its E. Milton, Fl., yard Oct. 1, after a 30month shutdown.

Garter Lumber has closed its branch in lonia, Mi.

ProBuild has closed its component plant in Hampshire, ll., and lumberyard in Wheaton, ll., consolidating the latter's operations at its yard in Yorkville.ll.

Ace Hardware continues to grow. On Oct. 6, Jim Junga opened a 10,500-sq. ft. Ace in Saline, Mi,, just as another new Ace was unveiled at The Village at North Elm, Greensboro, N,C, Cayce Ace Hardware, cayce, S.C., was opened by Brandon Clarke in the former home of Hardwarehouse Ace, which closed in 2008. Seven of the store's 12 employees are ex-Hardwarehouse workers, including longtime manager Donnie Wheelis.

Meanwhile, the Ace Hardware in Skokie, ll,, received a $30,000 gnnt to help fund a facelift for its historic 103year-old building.

Muir Village Hardware, Muir, Mi., has been closed by Nick Jockheck, owner for the last three years, qsdbolt^trlrrxr" rno.lil.rr! NELMA" lnvestigators are searching for the cause of two fires Oct. 10 and oct. 11 at the ReStore in S. Toledo, Oh.

Hilldale Ace Hardware, Madison, suffered $500,000 in damage from an Oct. 17 fire.

Lowe's opened a new 103,000sq. ft. store OcL 22 at Porters Neck Crossing in Wilmington, N.C., and opens a 116,000-sq. ft. store next month in S. Naples, Fl.

Menards hopes to open a store next fall in Yankton, S.D.

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Habitat for Humanity opens a ReStore discount LBM outlet Nov. 20 in South Bend, In., and held a Sept. 25 grand opening for a ReStore in W. Norriton, Pa.