Selling part of the family business

The NY Times carried an article about the Crane & Company, the venerable producer of fine stationery and exclusive maker of U.S. currency with more than a 200 year lineage. They recently sold a minority position in their company to an outside investor group . . . because they face some of the same challenges that perplex many family companies.

First, the expansion in the number of family members often results in diverging views about liquidity as some family shareholders lose their direct connection to the company and the community. Second, securing the capital for future growth while meeting the liquidity objectives of the shareholder group is one of the most vexing challenges that family business face.

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