The Owner's Journey Chapter II – Key Decisions and the Emotional Dimension of the Journey

Edson Gissoni and Rual Rousselet – Executive Partners of DMS PARTNERS

Continuing with the theme "THE OWNER'S JOURNEY," where in the first chapter we had the opportunity to explore the concept and the main phases of this journey, in this new chapter we will explore the main decisions to be made during this "JOURNEY" and the emotional impact on the main people involved in the process: the owner, family members, and key employees of the company.

Key decisions throughout the Journey

At each stage, the Owner faces decisions that have a direct impact on the company's value and family harmony. Among the most relevant are:

• To determine whether the company will be a "family business" (with family members in management) or a "family-owned business" (controlled by the family, but run by market executives);

• Establish rules for the entry, development, and exit of family members in management, avoiding perceptions of privilege or injustice;

• To clarify roles and decision-making powers among partners, heirs, advisors, and executives;

• Deciding whether or not there will be a council (advisory or administrative), who will compose it, and what topics will be discussed in that forum;

• Planning liquidity scenarios: selling a portion of the company, opening up to investors, and corporate reorganization among family branches.

When these decisions are postponed, they don't disappear; they simply reappear in the form of conflict, litigation, or loss of value. By treating them as a natural part of the Owner's Journey, the entrepreneur takes a proactive stance, reduces improvisation, and increases the predictability of the future.

The emotional dimension of the Journey

Talking about succession is also talking about identity, recognition, and finitude. For many owners, the company is intertwined with their own lives: it's where they've invested time, energy, relationships, and reputation. Not surprisingly, topics like "my time to leave," "who will take my place," and "how will I be remembered" often evoke ambiguous feelings of pride, fear, and resistance.

Therefore, the Owner's Journey is not just a technical plan, but also an emotional process. It involves the owner, their family, and their key executives in difficult but necessary conversations: what each one expects from the future, what are the limits of each member's role, and what are the priorities for preservation: assets, brand, jobs, and social legacy.

When these conversations are facilitated by experienced third parties, the process tends to be less stressful and more constructive.

Where to begin organizing the Owner's Journey?

For many business owners, the biggest challenge isn't understanding the importance of the topic, but knowing where to begin. A good starting point is to honestly answer three questions:

1. If I needed to leave the company tomorrow for 12 months, would the business continue to operate safely?

2. Is there a team within or outside the family prepared to make key strategic decisions?

3. Are there documents that organize the rules between partners, heirs, and executives, such as a shareholders' agreement, family protocol, succession plan, and board regulations?

If the responses indicate weaknesses, it is not a reason for blame, but an invitation to action.

The Owner's Journey begins when the entrepreneur decides to approach their future retirement with the same professionalism they always applied to the company's growth. From there, each step taken towards governance, succession, and clarity of roles reduces risks, creates value, and increases the chances of the legacy spanning generations.

A successful conclusion to the Owner's Journey doesn't mean "abandoning" the company, but consciously choosing the next chapter: mentor, advisor, investor, or someone aiming for new life projects. The important thing is that this choice is made by the Owner, not by circumstances.

Conclusion

The Owner's Journey can be a grueling and often frustrating process if not well prepared and managed, so it requires careful planning and meticulous execution.

Following the aforementioned steps, paying attention to necessary precautions, and utilizing the expertise of a team of specialists can significantly increase the chances of success in this process. With a planned, strategic approach, executed correctly and at the right time, it's possible to manage the owner's transition in a controlled and efficient manner, with greater potential for gains for all involved.

To make this happen, rely on the expertise of the Mergers & Acquisitions (M&A) team at DMS Partners.

FAQ – Owner's Journey

What happens when the owner postpones decisions about succession and governance?

Postponing decisions about succession and governance increases the risk of conflict, loss of value, and strategic insecurity. When corporate, succession, and management rules are not defined in advance, family and business problems tend to arise during times of crisis, putting pressure on the business and reducing predictability for partners, heirs, and executives.

How do I start organizing the Owner's Journey in practice?

The first step is to assess the company's ability to continue operating without the owner's direct involvement. This includes:

• Check if a succession plan has been established;

• Structuring corporate agreements;

• Define the roles of family members and executives;

• Create governance mechanisms;

• Planning for liquidity and estate planning scenarios.

Companies that start this process early reduce future risks.

Why does business succession involve emotional issues in addition to technical ones?

Business succession involves emotions because the company often represents the owner's identity, legacy, and personal history. Issues such as leadership leaving, recognition, and continuity evoke insecurity, resistance, and fear of losing relevance. Therefore, well-managed succession processes combine technical governance with emotional mediation and family alignment.

What is the difference between a "family business" and a "company of the family"?

A "family business" has family members directly involved in the operational and strategic management of the business. A "family-owned business," on the other hand, maintains family ownership control but delegates management to professional market executives. This distinction impacts governance, succession, meritocracy, and the company's long-term growth model.

What documents help structure the Owner's Journey?

The key documents for organizing the Owner's Journey are those that create legal, corporate, and succession clarity. Among the most relevant are:

• Shareholders' agreement;

• Family protocol;

• Succession plan;

• Council regulations;

• Corporate governance structure.

These tools help reduce conflicts and protect the company's legacy.

Talk to DMS Partners

If you wish to structure business succession, strengthen corporate governance, or prepare your company for the next growth cycles, count on specialized support.

📲 WhatsApp: (11) 91168-2965

✉️ Email: contato@dmspartners.com.br

The owner's journey demands strategic decisions, clarity, and preparation. The ideal time to begin is before circumstances decide for you.