If you own a family business, you already balance three moving pieces: the family, the company, and the ownership. When those worlds collide—succession, dividends, roles for rising-generation talent—a neutral guide can turn tough conversations into clear decisions. That’s where a family enterprise advisor comes in.
What a family enterprise advisor actually does
A family enterprise advisor (often with the FEA designation) helps your family design how decisions get made—before a crisis forces them. They are not there to replace your accountant, lawyer, or portfolio manager. Instead, they coordinate those specialists and facilitate the human side of continuity: purpose, roles, process, and accountability.
Expect help across four lanes:
- Family – values, vision, conflict resolution, education for rising gen.
- Ownership – dividend policy, liquidity expectations, buy–sell mechanics.
- Business – leadership development, governance, independent directors.
- Wealth – planning outside the business: diversification, philanthropy, next-gen readiness.
Why most families wait too long
Canadian owners often start with technical fixes—trusts, freezes, holdcos—without first aligning what the family wants and how they will decide. Documents then chase disagreements instead of preventing them. A family enterprise advisor flips the sequence: align purpose and rules first, then slot in the tactics with your tax and legal teams.
Canadian context: integrate strategy with structure
A seasoned family enterprise advisor will not give tax or legal advice, but they will make sure your advisory bench addresses the right issues, such as:
- Estate freeze and trusts to shift future growth (and the 21-year deemed disposition to plan for).
- Lifetime Capital Gains Exemption (LCGE) on qualified small business corporation shares, and how ownership structure affects eligibility.
- TOSI (Tax on Split Income) and attribution rules that can surprise families paying or distributing income.
- Shareholders’ agreements, buy–sell triggers, and funding with insurance.
- Dual-will strategies (in some provinces), philanthropy, and family foundations or donor-advised funds.
The point is not to DIY the rules—it is to ensure your why and how drive the what.
Typical deliverables from a family enterprise advisor
- Family charter/constitution: the plain-language “rules of the road” for values, vision, decision rights, conflict steps, and communication.
- Family council: an ongoing forum where owners and rising gen discuss education, philanthropy, and policy—separate from operations.
- Employment and compensation policy for family members: criteria for joining, reporting lines, performance reviews, and how to exit with dignity.
- Dividend and liquidity policy: how profits are shared, when liquidity events may occur, and expectations around reinvestment.
- Board evolution plan: from advisory board to a true fiduciary board with independent directors as the business scales.
- Succession roadmap: timelines for leadership transition, mentoring, and contingency planning.
A simple process that works
- Discovery and mapping – interviews across the family to understand goals, worries, and non-negotiables; a quick map of entities and roles.
- Design workshops – facilitated sessions to align purpose, decision rights, and policies (dividends, employment, information-sharing).
- Advisor huddle – the family enterprise advisor coordinates with your CPA, lawyer, insurance strategist, and investment team to ensure documents match decisions.
- Implementation and cadence – launch the family council, set the annual meeting rhythm, and define reporting (one-page dashboards beat 60-page binders).
- Review and adjust – revisit policies when life changes: marriages, exits, acquisitions, or a new leader in the chair.
Common pitfalls—and how a family enterprise advisor prevents them
- Unclear roles: “Sibling equals” in ownership, “boss and employee” in the business. An advisor helps separate forums so relationships don’t crash into org charts.
- Dividend tension: Lifestyle expectations outpace business reinvestment needs. A documented dividend policy reduces arguments and surprises.
- Founder trap: Everything still runs through one person. The advisor coaches decision-rights handoffs and builds second-line leadership.
- Next-gen whiplash: No development plan, then sudden responsibility. The advisor sets education paths, internships outside the company, and progressive accountability.
- Silence until conflict: Families hope issues will pass. Structured, light-touch family meetings surface concerns early—before lawyers do.
90 days to momentum
You do not need to “boil the ocean.” Here is a compact sprint many Canadian families use:
- Week 1–2: engage a family enterprise advisor, define scope, and schedule interviews.
- Week 3–6: hold two short design workshops: (A) purpose & principles; (B) decision rights, dividend policy, and employment rules.
- Week 7–8: advisor huddle with CPA and lawyer to align structure (freeze/trusts/agreements) to the decisions made.
- Week 9–12: launch a family council, set an annual meeting date, approve a one-page dashboard, and confirm next-gen development plans.
In three months you will have clarity on how your family decides, a roadmap for leadership and ownership transition, and a coordinated professional team executing the technical pieces.
How to choose the right family enterprise advisor
- Training and designation: look for the FEA credential or equivalent depth in family systems and governance.
- Canada-specific experience: familiarity with LCGE, TOSI, estate freezes, and provincial nuances.
- Facilitation style: you want a calm presence who can guide difficult conversations without taking sides.
- Team player: they should coordinate—enthusiastically—with your accountant, lawyer, and investment professionals.
- Deliverables and cadence: ask for examples of charters, policies, and meeting rhythms (sanitized, of course).
Bottom line: A family enterprise advisor helps you turn a successful business into a durable, values-aligned enterprise—one that supports livelihoods, relationships, and community for decades. With the right governance, clear policies, and a coordinated advisory bench, Canadian business families can reduce conflict, speed decisions, and pass both capital and confidence to the next generation.
This article offers invaluable insights for family businesses, emphasizing alignment before structuring. The step-by-step guide and common pitfalls are particularly helpful in preventing future conflicts.