This week I had the pleasure of attending an event put on by Groupe Relève Québec, which became the inspiration for this weekly blog. It was a presentation given by Mr. Pierre Gratton, of UQTR, who talked to us about the research thesis he intends to pursue to earn his doctorate.
Mr. Gratton had come to talk to us about the “Negotiation process in an external business transfer/takeover.” Even though it was not a talk about family transfers, I’m glad I made the trip to Quebec City anyway, since questions about family transitions were also raised.
It was precisely the answer to one of those questions that stuck with me and that inspired me to write this blog. Mr. Gratton mentioned that during a meeting with a family that was about to undertake a succession from father to son, he had stated that certain elements would be “up for negotiation” among the family members.
It seems the mother was shocked by this suggestion; what do you mean, “negotiate with your family?” But at his next meeting with this family, the mother, having thought it over carefully, came to apologize, and told him that he was quite right, and that yes, there would be a need to negotiate the terms and conditions of the transfer among the members of her family.
Let’s get back to the subject of Mr. Gratton’s presentation on the negotiation process. If I understood correctly what he was putting forward, it’s largely the definition many people give the word “negotiation” that is far too narrow, and what he wanted to offer is a new, much broader interpretation.
Note that “affaires” and “business” translate into Spanish as “negocios.”
I support his reasoning on this subject, since for me, we negotiate the details of our lives several times a day, without even realizing it. Deciding what we’re going to do today, where we’re going to eat, whether our teen is due for a haircut: these are negotiations we hold on a regular basis.
What Mr. Gratton proposes is to create a tool, or a model, that describes all the elements that are part of a business transfer or takeover between the seller and the buyer. He told us he was limiting his research to external transfers, since the idea of broadening the context to include internal and family transfers would be far too onerous a task.
But my blogs focus on family SMEs, so I’ll allow myself to continue along this wavelength.
For me, the words “negotiation” and “discussion” are not as different as many would think. I advocate open, clear and regular communication. Whether in writing or out loud, the simple fact of having an exchange of ideas, where the parties are free to add their thoughts, is the key.
In the family SME, there is often far too much left “unsaid.” Too many things happen in silence, and everyone has to guess what the others think, want, and believe. Over time, people each develop their own way of interpreting what is going on, but nobody talks about it, since there are subjects you don’t discuss among family members.
Let’s stop this nonsense!
OK, I apologize, I went off on a tangent. We started this blog by talking about transferring a business from one owner to a future owner, which is something that gets negotiated, even among family members.
But then I allowed myself to complain about the lack of communication among family members who work together in a family SME day to day, outside of a transfer context.
My point is that communication is important throughout our lives, in the family and in business, and that we have to work very hard to encourage people to communicate their own point of view.
My challenge for those who work in a family business is to create a regular forum (every three months?) where family members can talk about any subject at the intersection of the family and the company. I encourage you to put the rising generation in charge of the agenda, the process, and the follow-up. See where it takes you.
