Family business fixes

MICHELLE DODEK

Transitioning a family business from generation to generation can be challenging. Most families have some amount of "schtick," which can really get in the way of smooth and profitable functioning in times of change.

Diane Friedman, senior advisor in corporate finance at local independent firm Wolrige Mahon, is an expert in helping facilitate these transitions. "All families think their dynamics are unique, but actually so many have similar issues," said Friedman with a chuckle. She is close to completing the Business Family Advisors Program, which she said has given her a great deal of insight that has proven helpful in her work and has made it even more interesting.

Friedman loves working with families and enjoys helping them keep their businesses healthy. "Different generations interact in different ways within the business," she commented, noting that her job often involves counselling the senior generation to be sure that they are communicating clearly with their children. When people come to her for help in selling their family business, she always makes sure they have discussed the sale of the business recently and candidly with their children. "When I ask when they had the talk, they sometimes realize it was when their son or daughter was a teenager, so they revisit the topic. They still may decide to sell the business and that's OK. I can help them do that as well," said Friedman.

Friedman herself comes from a family who had a business, one in which she worked for many years. Her parents had three men's clothing stores and she remembers what it was like as store manager, not wanting to call her boss "Mom."

Friedman knew retail was not the direction she wanted to go with her life. Her brother also had other ambitions, so her parents did not pass on their business within the family. Friedman's current work with family businesses, she claims, is more a result of her work experience after graduating with a commerce degree than her life in her parents' business.

"I was drawn [to my job] by the current demographics. So many business owners are at or are nearing retirement age. Within the next five-10 years, many family-run businesses will be changing hands," Friedman said. There are also all of the social dynamics that intrigue her. She explained that some families make their business the most important aspect of family life, whereas others centre on the family. Of course, not all members of these families share the same beliefs, so she often helps the families find a balance between the generations.

Not only does she work with families, but she also works extensively with entrepreneurs. Her background in commercial lending and venture capital suits her to help businesses become more profitable.

Finding money is also something she does. Having worked with many financial institutions in the past, she knows that keeping in touch with the lenders is important. The current economic climate doesn't help much, she said. "Canadian banks are in good shape, but credit is tightening. The money that's there has stricter covenant requirements on it for business lending."

Even with the tightening on lending, she has not had the feeling that people are panicking in British Columbia. Entrepreneurs are still working the way they work best – creatively and independently – and families are doing what they need to do with their businesses. Friedman is thrilled to be able to help people do what is the best for them. For more information on how to access Friedman's services, call 604-691-6809 or visit the website WolrigeMahonadvisors.com.

Michelle Dodek is a Vancouver freelance writer whose full-time job is taking care of two young children.

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