When a family business takes over a small company and achieves unlikely
success, should it plan to include the next generation in its leadership?
When a family business takes over a small company and achieves unlikely
success, should it plan to include the next generation in its leadership?
In 1990, Larry Mendelson and his sons took operating control of a small publicly traded company. At the time, one of the company's divisions was losing $1 million a year, and a second division sold a single product to a rapidly declining customer base. But thanks to the Mendelsons' focused innovation, disciplined business model, and decentralized entrepreneurial structure, HEICO had grown to more than $600 million in revenues and $55 million in profits in 2010. The company is now considering its future and projects healthy growth in its share prices for the next 10 to 20 years. How can it continue its success in the future? Should it stay the course or alter its strategy? Should the family company consider succession planning for future generations?
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