Have you watched Succession, the HBO drama about a family-owned business? If you have ever been involved in running a family enterprise, you may recognise some of the scenarios portrayed...though hopefully not all! The series illustrates the intense rivalries, power struggles, and complex dynamics that can emerge when leadership passes from one generation to the next.
In reality, disputes in family businesses can arise over leadership roles, ownership, or the future direction of the company. While theories and frameworks offer guidance, they are not one-size-fits-all solutions. Each family and business is unique, requiring tailored approaches to conflict resolution, governance, and leadership development.
Five Conflict Resolution Strategies for Family Business Succession
Traditional approaches to conflict, such as lecturing, insisting one side is “right”, or pushing others into submission rarely bring lasting resolution. In fact, they often deepen divisions and damage relationships. A more effective path lies in structured, evidence-based strategies that not only resolve disputes but also safeguard family bonds and ensure business continuity.
1. Recognise Biased Fairness Perceptions
All parties in a conflict typically believe they are in the right due to egocentrism—the difficulty of seeing a situation from another person’s perspective. Self-centred fairness perceptions can cloud judgement, making it harder for families to negotiate constructively. In practice, hiring a neutral mediator or a family business advisor, can help all parties understand differing perspectives and clarify the factual basis of the disagreement.
2. Avoid Escalating Tensions with Threats or Provocative Moves
Threats, ultimatums, or attempts to intimidate often trigger retaliation, escalating conflict. While legal action may sometimes be necessary, it should be a last resort. Families benefit from calm, structured dialogue where problem-solving replaces brinkmanship.
3. Overcome an “Us versus Them” Mentality
Group affiliations can foster loyalty but also amplify suspicion towards those perceived as outsiders even within the same family. This mindset can be countered by identifying shared goals, such as the long-term success of the business, and reinforcing points of connection. This shift builds trust and encourages collaboration rather than division.
4. Look Beneath the Surface to Identify Deeper Issues
Conflicts that appear to revolve around money or tangible assets often mask deeper concerns, such as recognition, respect, or emotional security. Addressing these underlying issues can expand the scope of negotiations, transforming zero-sum disputes into opportunities to create shared value.
5. Separate Sacred from Pseudo-Sacred Issues
Some disputes touch on values that feel non-negotiable, such as family legacy or moral beliefs. While these issues can be the hardest to resolve, many are “pseudo-sacred”, meaning solutions exist if framed correctly. For example, disagreements about selling inherited land can be softened if proceeds are allocated towards causes aligned with family values.
Which Expert Should Be Involved in Family Succession Conflicts?
Family business succession conflicts are complex because they often mix emotions, legacy, and business priorities. No single professional can solve every problem, so the right expertise depends on the nature of the conflict.
Legal Disputes
If the conflict involves ownership rights, inheritance claims, or shareholder agreements, lawyers or family business legal advisors are critical. They formalise agreements, prevent litigation from escalating, and ensure that succession plans are legally sound.
Financial & Valuation Issues
If disagreements involve business valuation, equity distribution, or wealth management, then financial advisors, accountants, or tax advisors should be consulted. They provide transparency, ensure fairness, and minimise disputes over financial matters.
Assessing Leadership Readiness
When succession conflicts arise over who is best prepared to lead, it is essential to move beyond subjective opinions within the family and rely on objective, structured evaluations. At AIMS International Malta, we provide families with the tools to make these decisions transparently and fairly.
Our trained family business advisers conduct comprehensive assessments across multiple dimensions, including:
Strategic Thinking – The ability to set vision, anticipate change, and make sound business decisions.
Emotional Intelligence – How well an individual manages stress, relationships, and complex family dynamics.
Decision-Making & Accountability – The willingness to take responsibility and lead others with confidence.
People & Team Leadership – Skills in motivating, managing, and developing talent across generations.
To ensure accuracy, we use testing, 360-degree feedback, and structured leadership interviews, alongside practical business case evaluations. Importantly, modern assessments have advanced significantly. They are highly sophisticated, data-driven, and resistant to manipulation, meaning they can no longer be “gamed.” This ensures families receive reliable insights into true capabilities and potential.
For those not yet fully prepared, we design personalised development programmes—including executive coaching, mentoring, leadership workshops, training and facilitation programmes. This balanced approach respects family legacy, while ensuring the business is guided by capable, future-ready leadership.
In some instances, the family may decide to appoint an external leader to run the company, while family members focus on ownership and profit-sharing. This approach provides professional management without compromising family interests. AIMS International Malta, through our Executive Search services, can identify and recruit C-suite executives or middle-management talent with the right skills and experience to drive the business forward. This ensures that the company is competently led, while the family retains oversight and aligns on strategic objectives. But we do not stop there: culture is equally important. We work closely with new leaders to integrate them into the family business, ensuring alignment with values, vision, and long-term goals.
At AIMS, we recognise that sometimes the best outcome is identifying a leader from within the family. At other times, preparing multiple family members for different roles—or appointing an external professional leader—ensures continuity until the next generation is fully ready. Whatever the path, our advisers ensure the process is fair, structured, and aligned with the family’s long-term vision.
Family Charter for Continuity
Beyond leadership assessments and external executive appointments, AIMS International Malta also helps families prepare Family Charter, a written agreement that sets out shared values, governance rules, and guidelines for decision-making. These protocols cover many of the key issues addressed in succession and leadership readiness: ownership roles, leadership and ownership transitions, conflict resolution mechanisms, profit distribution, and strategic vision. By putting these understandings into writing, families ensure clarity, reduce uncertainty, and create a sustainable framework that protects both the business and family harmony across generations.
Relational or Emotional Conflicts
When conflict is deeply emotional, rooted in sibling rivalry, parental control, or long-standing resentments, families benefit from involving a neutral family business advisor or mediator. This could be a professional family business advisor, a trained mediator, or, in some cases, a trusted family friend who commands respect from all parties. While family friends can sometimes ease tensions, they are most effective when paired with professionals who provide structure, objectivity, and business expertise.
This is the million-dollar question every family faces: Who should be involved to guide the process without inflaming tension. At times, families may also involve coaches, therapists, or legal advisors, depending on the depth and nature of the conflict. Selecting the right combination of voices—those who understand both family dynamics and business continuity—is crucial.
Building Trust Through Clarity: Why Transparency Matters
In family businesses, information gaps, where some members know more than others, can quickly lead to suspicion, resentment, and disengagement. When stakeholders don’t understand why decisions are made or how resources are allocated, mistrust can grow, even in close-knit families.
Transparency is the foundation of trust. It turns informal goodwill into structured accountability, reduces gossip, fosters an ownership culture, and ensures decisions are communicated clearly and professionally.
Transparency does not mean sharing everything with everyone; it means giving the right people access to the right information at the right time.
Key Areas Where Transparency Matters
Area | Why It’s Important |
Financial Performance Reporting | Keeps family members informed, particularly non-operational shareholders |
Roles and Responsibilities | Prevents confusion and duplication; clarifies accountability |
Business Decisions | Builds confidence in leadership and reduces resistance to change |
Succession and Ownership Plans | Minimizes conflict and aligns expectations about the future of the business |
By embedding these practices, family businesses can build trust, reduce conflict, and create a culture of accountability that supports both the business and the family’s long-term legacy.
Summary
Family business succession is one of the most challenging processes a business can face. The complexities arise not only from operational and financial considerations but also from deeply intertwined family relationships, emotions, and legacy concerns. Successfully navigating these challenges requires a structured, evidence-based approach that balances fairness, transparency, and business continuity.
At AIMS International Malta, we work closely with families to assess leadership readiness, address relational conflicts, and bring in the right combination of experts, including legal advisors, financial consultants, and coaches, depending on the situation. Many of our advisors are experienced business owners themselves and understand both the practical and emotional pressures involved. This ensures the process is fair, structured, and aligned with long-term strategic goals.
By embedding clear governance structures, fostering transparency, and investing in leadership development, family businesses can not only mitigate conflict but also cultivate a culture of trust, accountability, and resilience. Succession is more than a transition of roles; it is the careful shaping of the business’s future while honouring family values. With the right approach, the next generation of leaders can step forward confidently, ensuring the business continues to thrive for years to come.
"In family businesses, trust and transparency are as important as strategy. Succession succeeds when we nurture capable leaders while protecting both legacy and relationships."— Louise Vella, Managing Partner @ AIMS International Malta
This article is part of a six-part series on Succession Planning, created to help family businesses plan confidently for leadership transitions. Look out for the next piece in the series.
Sources and Further Reading
Babcock, L., & Loewenstein, G. (1997). Explaining bargaining impasse: The role of self-serving biases. Journal of Economic Perspectives, Carnegie Mellon University.
Program on Negotiation at Harvard Law School. (2019). Types of Conflict in Business Negotiation—and How to Avoid Them.
Program on Negotiation at Harvard Law School. (2019). Conflict Resolution Strategies.
Mnookin, R. (2010). Bargaining with the Devil: When to Negotiate, When to Fight. New York: Simon & Schuster.
Bazerman, M. H. (2006). Judgment in Managerial Decision Making. Harvard Business School.
About the Author
Louise is a seasoned professional with over 25 years of experience in the Corporate Services Provider (CSP) industry. She has supported a wide spectrum of clients, including those from the corporate, private, and public sectors, as well as entrepreneurs, across various aspects of company secretarial work, corporate governance, trustee, directorship services and risk management.
How Can I Help You Preserve Your Family Legacy?
Unlike larger corporations that adhere to clearly defined pathways guided by EU directives and governance frameworks, family businesses often navigate intricate routes shaped by tradition, emotional considerations, and close personal relationships. Consequently, succession planning represents one of the most formidable challenges that any family business will encounter.
I'm happy to share insights and provide you with a solution that meets the specific needs of your family business.