This story provides an illustration of one of the key reasons family businesses do not survive generational change...because of dysfunctional family relationships. This angel investor was smart enough to recognise the issues involved and insist on a relationship "fix"as part of the investment deal.
Lemonis invested $1.5 million for 45 percent of the company, but insisted that the business immediately fix its dysfunctional father-son relationship. Why? Second generation businesses have a 60 percent failure rate, while third generation businesses fail at a rate of 90 percent.