Ep. 50 — International Business Insider with Nicolas Rivera

Welcome to the "Show Me The Way" podcast with David Seitter

In the landmark 50th episode of "Show Me the Way," Dave takes his listeners on an enlightening journey into the intricate world of business succession planning. This special international edition features Nicholas Rivera, Cofounder of Bristol Consultores in Colombia, illuminating the unique challenges and strategies involved in transferring family-owned businesses across generations and borders.

Ep. 50 — International Business Insider with Nicolas Rivera

Nicholas Rivera, born and raised in Bogota, Colombia, began his career in finance at Sergio Arboleda University. His early experiences as an investment banker and management consultant laid the foundation for his expertise in business strategy, growth, and financing. By 2020, Rivera co-founded Bristol Consultores, focusing on helping struggling businesses navigate the challenges posed by the COVID-19 pandemic. A key aspect of Bristol Consultores' work involves assisting older business owners, particularly Hispanic families, in creating viable succession plans.

The Importance of Emotional Intelligence in Business Transfers

One of the standout points in Rivera’s approach is the emphasis on emotional intelligence. He highlights that the most significant pitfalls in business transitions often stem from emotional rather than financial or technical issues. Rivera's experiences reveal that the emotional handling of business owners and their families is crucial for a successful transition.

Key Emotional Challenges

1. Expectations vs. Reality: Often, the expectations of older business owners about the value of their company diverge significantly from market reality. Setting realistic expectations with both the founders and their children is paramount.
2. Emotional Attachment: Many business owners see their companies as extensions of themselves and struggle to let go. Rivera discusses strategies to keep the founders involved, such as maintaining a role on the board, which can help mitigate the emotional impact of transitioning leadership to their children.

Real-Life Cases and Practical Advice

Rivera shares compelling anecdotes that illustrate the emotional and financial dynamics of these transitions. One notable example involves a company that had been losing money for 11 years. A heartfelt but harsh outburst from the founder's son during a tense meeting underscored the deep emotional stakes involved. Through strategic restructuring and setting realistic expectations, Rivera’s team managed to turn the company around, securing a win-win situation for both the founder and the new CEO.

Guidelines for Founders

Rivera provides three crucial pieces of advice for parents looking to transition their business to their children:

1. Be Realistic: Treat your children as investors, not just as family members inheriting a business. Set and communicate clear and realistic expectations.
2. Let Go: Once you have transitioned the business, avoid interfering in daily operations. Trust your successors to lead.
3. Enjoy Life: Use this transition as an opportunity to explore personal interests that you may have set aside during your active business years.

Addressing the Next Generation’s Reservations

A recurring theme is the reluctance of the next generation to take over family businesses, often seeing it as a source of struggle rather than opportunity. Rivera addresses this by emphasizing that business can and should be enjoyable. By redefining the role of the next generation and providing them with more substantial decision-making power, many potential conflicts can be alleviated.

Rivera's insights reveal that the successful succession of family businesses requires a blend of financial acumen and emotional intelligence. His methodology, which combines restructuring, realistic expectations, and preserving family harmony, has proven effective both in Colombia and within the Hispanic business community in the United States.

 

Bristol Consultores for Hispanic Business Owners

For those interested in ensuring a smooth and prosperous transition of their family business, Rivera and his team at Bristol Consultores offer invaluable expertise. Their work highlights the importance of addressing emotional dynamics and involving professional strategies to create successful business succession plans.

For more information and resources, visit Nicholas Rivera’s Bristol Consultores on their website or connect with them on LinkedIn and YouTube.

 

 

To reach out to Dave for advice or consultation, please visit www.davidseitter.com or email him at dseitter@spencerfane.com

 

Disclosure

This podcast is provided for educational purposes. It does not constitute legal advice and is not intended to establish an attorney-client relationship. The recommendations contained in this podcast are not necessarily appropriate for every individual or business. In determining the best course of action, business owners should consult with an attorney on their distinct circumstances.