This guide is designed to help family office boards, family councils, and trustees conduct a structured, productive discussion about whether new leadership could add value to the organization. It is not intended to presuppose a solution, but to create clarity, alignment, and disciplined decision-making.
When families begin to question whether their office is operating as effectively as it should, the challenge is rarely a lack of commitment — it’s a lack of perspective. The eight questions below are designed to prompt an objective review of leadership effectiveness, cost alignment, and governance clarity, and to help determine whether temporary leadership support could be valuable without forcing permanent decisions.
If operating expenses have increased but performance, transparency, or peace of mind have not improved proportionally, it may be time for an objective operational review by an interim executive. The right ongoing answer might be a fractional executive so you can get all of the firepower of an experienced leader at far lower cost.
When a national deli meat manufacturer faced declining yields, equipment inconsistencies, and looming leadership turnover, they called in a seasoned interim COO from InterimExecs’ RED Team to get operations back on track.
Michael Bartikoski, a veteran operations executive with deep roots in food manufacturing, stepped into the role with three goals: stabilize operations, improve yields, and build the next generation of leadership.
When it comes to family business succession, pain is unavoidable. Even in the happiest, most loving families, there will be moments of disagreement and dissension. It’s unavoidable. That’s because the goal of a family is a loving relationship. But in business, goals must always include results, even if hard-fought.
So the acknowledgement implicit in family business is: there will be pain. But suffering is optional.
That is the key message InterimExecs CEO Robert Jordan sends in this lively 7-minute video about family business succession conflict:
Nearly all (98%) US companies that responded to PwC’s 11th Global Family Business Survey say they have some form of governance policy in place. But, just what “governance policy” means varies widely. It could be anything from a shareholders agreement (75%) to conflict resolution mechanisms (22%).
In addition, the survey found that 78% of respondents say that protecting the business as the most important family asset is their top goal for the next five years and 72% want to ensure the business stays in the family. Despite that, in 2021, only 34% said they had a robust, documented, and communicated succession plan in place.
Perhaps it shouldn’t be all that surprising that so many family-owned businesses lack a formal plan. Creating a succession plan requires having difficult discussions around emotionally fraught family dynamics:
Despite widely quoted statistics that say that only 30 percent of family businesses successfully transition to the second generation and only 13 percent survive through the third generation, a Harvard Business Review report says that is not true.
So you’re looking for an exit strategy and the sale of your business seems like the best approach. But how do you get the most for the business you have built? Start right now preparing your company for a sale.
The good news for sellers: It’s a seller’s market. There are not enough assets in the world for the amount of investment banking cash that is sloshing around in the markets, as InterimExecs CEO Robert Jordan said in this recent webinar:
Sell to another company, often with the greatest potential to maximize business value.
Transfer ownership to a trusted partner, employee, or management team for a smoother transition.
Pass the business to the next generation while preserving family ownership and legacy.
Sell shares publicly to create liquidity and raise capital, typically for larger companies.
Close the business and sell its assets when continued operations are no longer viable.
When it’s time to step away from the business you’ve built — because you’re ready to retire, you want to pursue another opportunity, or for some other reason — what’s the right way to exit your business?
The short answer is: It depends.
Here, we lay out five examples of exit strategies and look at who should consider each one.
Read on for the details, or get the highlights from this lively 10-minute webinar led by InterimExecs CEO Robert Jordan:
A merger or acquisition is a particularly attractive option for entrepreneurs and business owners of successful startups. It means selling your business to another company that wants to expand, eliminate the competition, or acquire your company’s talent, infrastructure or project. If the company is a fast-growing startup in the technology sector, it can command offers from venture capital firms as well.
An M&A deal can be the most lucrative for a business owner because you can maintain control over the terms and the price of the deal.
This is the best exit strategy for a highly successful business that can command interest from more than one suitor. Attracting multiple bids from potential buyers is the way to really drive up the price.
However, making a deal that sticks can be a challenging and time-consuming process. And getting the company ready for the sale has its own demands. It is a good time to call in an interim CFO with experience selling other companies. That is especially true for companies that haven’t had to report to outside investors; an acquisition exit strategy can require a whole new level of financial reporting and accountability.
This can mean selling to an existing partner or setting up an employee buyout. These types of deals are usually considered “friendly buyer” sales because the purchaser is often an individual or entity already known to the small business owner.
Most often a small business exit strategy, selling to a friendly buyer means the investor or buyer has the best interests of the company in mind. Chances are it will mean a smooth transition and the company will continue running as it always has, especially if it’s a management buyout or the workers take ownership.
On the downside, this type of exit strategy can mean a lower business valuation and, therefore, less cash to the owner who is selling.
InterimExecs RED Team of top executives work with owners to develop and execute a strategic plan for exiting your business. Contact us for a confidential consultation about your plans for the future and how your company can smoothly transition to new leadership.
As the name suggests, this is an exit strategy option chosen by many (but not all) family-owned businesses. It means passing the business down to someone in the next generation of the family, usually someone who has been groomed for the role for years and will run the day-to-day operations in much the same ways it’s always been run.
While this is one of the most common types of exit strategies, family succession requires a whole different level of business succession planning because you’ll be navigating the potentially treacherous waters of family politics in addition to planning for the future of your company.
Family-owned companies with a family member (or members) already serving in senior-level roles in the company are the most likely to choose this exit plan. On the upside, it keeps the business, its legacy, and its income-producing operations in the family. But it only leads to success if the next gen leader is fully up to the task. Statistics show that second-generation-led organizations have a 60 percent failure rate. For third gen, it’s an even more stunning 90 percent.
If this is the exit strategy you choose, read our full exploration of the challenges of transitioning business leadership to the next generation and this advice for dealing with conflict in a family business.
An IPO exit is most likely only available to larger companies with a proven track record of success and $100 million or more in annual revenue. Choosing an initial public offering — selling shares on a stock exchange — is a serious endeavor that comes with high regulatory hurdles and intense due diligence scrutiny of your business operations, financials, and strategic plan.
An IPO can take many months and require specialized expertise you likely do not have within the company’s leadership team. It’s a good time to consider an interim CFO with experience taking other companies public, managing disclosures, and working with investment bankers.
On the upside, there is huge potential for a big payday for owners.
Reserved for large, successful companies, an IPO business exit plan can be the right choice for companies with a proven track record. But, it’s important to note, going public could mean that you have to stay on for a defined period as the organization’s leader to ensure stability in the post-IPO phase.
Everything owners, investors, and boards need to know about deploying interim executives — when to use them, how to vet them, what to pay, and how to get results fast.
This is a common exit strategy for failing business ventures. It means you are closing the business and selling off its assets — the buildings, vehicles, machines, and inventory — in a final sale that ends the company.
This is the option for companies that are losing money and have little hope of recovery. Closing the business and selling off the assets can net the owner some cash, but often the sale proceeds end up going to creditors.
We have scores of executives experienced in selling, restructuring, and turning around businesses. Contact InterimExecs for a confidential consultation about your plans for the future and what the company you have built needs to smoothly transition to new leadership. InterimExecs RED Team of top executives work with owners to develop and execute a strategic plan for exiting your business. That means providing operational expertise to increase the value of your business and putting structure in place so you can successfully change roles or transition out.
Part 1: Choosing the Exit Strategy that is Right for You
Part 2: The Critical Importance of Business Succession Planning
Part 3: Identifying the Right Successor
Part 4: Family Business Transition to the Next Generation
There’s bad news and good news when it comes to family business transition to the next generation.
First, the bad news: Only about one-third of businesses survive that transition. Here’s how the Harvard Business Review put it in a 2022 article: “In many family businesses, the tension between the eagerness of the next generation’s leaders to take control, and the founding generation’s willingness to relinquish control, is the source of many failed relationships and companies.”
InterimExecs CEO Robert Jordan takes a look at the challenges of family conflict in this lively 7-minute video:
Now, the good news: It doesn’t have to be that way. With a lot of planning, honest conversation, and realistic expectations, family businesses can survive and thrive for generations to come.
Here, we dive into the challenges of transitioning a family business to second-generation leadership and how to navigate those challenges successfully.
It’s no surprise that family business conflict is common among family-owned businesses. Or that it most often stems from family dynamics. The question is how to handle it.
There are plenty of business consultants who can step in to help companies manage family relationships in a business setting. The desired outcome is family cohesion and a successful family business.
In some cases, that can only happen when you bring in non-family members to run the business in the interest of promoting family harmony.
But, before we dive into that, let’s look at the biggest conflicts in family businesses.
Selling your business to private equity is a potentially very lucrative business exit strategy. In fact, the second sale — when the PE firm sells the company outright to recoup its initial investment — can be even more lucrative than the first deal when you sell to a PE firm.
But selling your business to a private equity fund is a complicated sale process and you could end up partners for a number of years before getting a big buyout when the second sale closes. So it’s important to understand all of the ins and outs before embarking on this path.
Here, we share 9 important questions you should ask if you are considering selling your business to private equity.
Interim executive compensation is customized based on scope, deliverables, and company complexity rather than a standard flat fee.
Engagements are typically structured as daily/monthly retainers or project-based rates, sometimes including performance bonuses.
Unlike permanent C-suite hires, interim executives do not require long-term contracts, severance packages, paid vacation, stock options, or health benefits.
Contracts can generally be terminated with 30 days’ notice, ensuring full accountability from day one.
Once owners, board members, and investors figure out exactly what an interim is and how an interim can help, the next question is: How much does an interim executive cost?
The short answer is: There is no off-the-shelf rate card for interim execs. Or more precisely, it doesn’t exist for the best interims in the world.
The first thing to understand about interim executive costs is to know that interim and permanent executive compensation is structured differently.
There are many ways the compensation differs, including:
Contracts for interim executives are always short-term vs. the long-term arrangements you make with permanent hires.
| INTERIM EXECUTIVE | PERMANENT HIRE | |
|---|---|---|
| Compensation Model | ✓ Weekly or monthly contract rate | Salary plus bonus and long-term incentives |
| Contract Length | ✓ Short-term engagement with defined objectives | Long-term employment |
| Benefits & Perks | ✓ No health insurance, PTO, retirement, or equity | Benefits, PTO, bonus, equity, retirement plans |
| Performance Expectations | ✓ Immediate impact and measurable deliverables from day one | Long-term leadership and organizational development |
| Compensation Risk | ✓ Income depends on securing the next engagement | Stable salary regardless of project completion |
| Flexibility | ✓ Typically 30-day cancellation clause | Longer notice periods or severance agreements |
The structure of an interim’s contract can vary greatly. They may be paid hourly, daily, monthly, or project-based. Sometimes there is a performance bonus or even equity incentive if an interim is tasked with creating incredible growth in an organization.
Your company is your baby and your baby isn’t like anyone else’s in the world. As such, the caliber of leader you need and the process and deliverables necessary to achieve the best outcome is a tailor-made solution – not an off-the-rack, one-size-fits-all experience.
We have talked to too many owners who are frustrated after shoveling out money to firms that in the end delivered a big binder containing pretty charts and templates, but no ability to execute.
If your company has particular needs, we will look for a specific fit with one of our RED Team interims, an elite group of interim, project, and fractional executives who have been selected because of their track records creating incredible results in companies.
| Engagement Model | Best For | Typical Compensation | Typical Duration |
| Full-Time Interim Executive | Executive vacancy, turnaround, crisis management, or major transformation | Weekly or monthly rate | 3-18 months |
| Fractional Executive (1-3 days/week) | Ongoing strategic leadership without a full-time commitment | Hourly, day rate, or monthly retainer | Ongoing (typically several months to multiple years) |
| Project-Based Executive | M&A integration, ERP implementation, restructuring, fundraising, or other defined initiatives | Fixed project fee or milestone-based pricing | Until project completion |
A doctor wouldn’t give you a prescription or treatment plan before they hear your symptoms. The same goes for an interim.
When we set up a call with an interim executive, they immediately assess:
After they hear you out, we will put together a custom plan for you that defines time, commitment, and compensation. Any less than a thoughtful process means you’re likely going to get a mediocre result.
At InterimExecs, we treat your situation as unique, and therefore put time and effort to match you with an executive right for you, as well as a tailor-made compensation plan.
Are you ready to explore how an InterimExecs RED Team member can meet the needs of your company? Contact us or call +1 (847) 849-2800
No benefits, severance, health insurance, or paid time off. Equity can occasionally be a factor for interim roles if the executive is tasked with building value to point of sale or another big exit.
While an interim’s effective daily or monthly rate may be higher, you pay strictly for the time needed without executive search fees, long-term bonuses, or benefits packages. The interim is also wired for fast value creation or turnaround, bringing an organization to a point of stability before handing off to a permanent hire.
Cost depends on the role (CEO, CFO, COO, CIO), company size, stage of business (growth, turnaround, crisis), and whether the scope requires full-time or fractional commitment.
Running a family business is no walk in the park. The family dinners or holiday gatherings could be mistaken for board room meetings, with topics of conversation jumping between family matters and minute business topics.
Discussions get further complicated when it comes time for a transition of ownership as the first generation of family businesses starts to look towards retirement and relinquishing control of day-to-day activities. Who will step in to lead the company?
A number of family business succession issues arise, from siblings quarreling about how to divide up the business and inheritance to instability within the organization as employees wonder what their future holds.
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First-year Change Agent members have access to the Interim Institute’s 4 hour audio program on the Fundamentals of Interim Management, and a one-hour strategy session to help jumpstart their interim career.
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