Principles or Payoff?
But is the possibility of an offensive new color—or culture—enough to keep one from selling the family business? “There are things more important than culture,” says Northeastern’s Karofsky, “and it’s called survival of the family. You may be in a position where it makes financial sense to sell, or the business isn’t viable anymore. The culture should take second place to that.” He recalls working with one family business that placed equality at the core of its culture. “Every family member got the same-sized office and same leased car,” he says. “It got to the point where they couldn’t afford to go on like that. They had to sell.”

Don Silver wrestled with value-laden questions about the future of his family’s third-generation family business, Penn Ventilation, as it was being acquired by rival Hart & Cooley in 1999. What about the family legacy? Would its corporate culture survive? How would the acquisition impact the workforce?

Silver knew it was time to sell the business; consolidation was overtaking the industry, and though Penn’s sales were strong, Silver says he “could feel my competitors breathing down my neck.”

Still, he had his share of sleepless nights and doubts. “I must have had every emotion during that acquisition,” reflects Silver. “I felt disappointed, guilty. There was a point at which I was concerned about losing the family legacy and disappointing the memory of my grandfather.”

Seller’s remorse is a common sentiment during the sale of any family business, say consultants, especially if that involves a shift in culture in what could be a move away from the family’s core values.

“A family business is a very emotional system," says Jane Hilburt-Davis, a Lexington, Mass., consultant and author of Consulting to Family Businesses. “There are a lot of passion and loyalty issues. Often, the family and business roles get mixed up.”