Every family business must decide who can enjoy ownership and what the benefits of that ownership are. Some owners choose to be value-out owners, intending to sell the business within a set timeframe. Most owners of family businesses consider themselves to be custodians of a legacy, stewarding the wealth of the family business (both financial and non-financial returns) to the next generation.

Here are some questions you and your family will need to explore when engaging ownership governance:

• • Who can be owners? (Only lineal or blood relatives? How about in-laws?)
  • How do we treat with owners working in the business and those that don’t? Do we need to establish any boundaries?
  • How do we make decisions together as owners?
  • How do owners exit the business?
  • How will shares be valued?
  • Do we have a buy-sell agreement in place?