I was watching the TV show “Billions” specifically the episode “Yumtime”. The main character Axelrod, bought a 4.9% stake in a publically traded business. This business was being run by the third generation of the family.
Axelrod was dissatisfied by the management of the company and was discussing the issues with the Chairman of the BOD. Stating they with all family run businesses the first generation “starts it”. The second generation “grows it”. Then the third generation “blows it”.
There is nothing new to this theory, which apparently has played out over and over again throughout the years over thousands and thousands of companies.
I am currently working with two companies currently being run by the second generation of owners. Both companies have the third generations working within the companies, but with both I have seen that the third generation does have a solid handle of several aspects of the business. Would they be ready to take over at a moment’s notice? Probably not, but I think they can get to a place where they won’t “blow it”.