This is the second part in a series of articles that address common problems and issues in family-owned businesses. The articles are based on an interview between Al McClymont, CEO of Autologica Dealer Management Systems, and J.C. Aimetta, an expert and coach who specializes in family-owned businesses.

Al McClymont: Several companies I personally know of have suffered huge troubles that were even irreparable sometimes, both for the company itself and for the relationship among the members involved, the emotional relationships… when a family member decides they want to, or that they need to sell their share of the family business.

This liquidity fund, generally placed in investments that can quickly be turned into cash, implies an immobilization of funds that the family business usually does not want to have. But it is a guarantee, when an emergency situation arises, that prevents someone from being forced to sell their part.

More Business Facts:

In summary: the company stops being a family business.

In the next part of this interview, we’ll talk about how a family-owned business can reconcile the interests of family members who work in the company, with the interests of those members who don’t.