Brothers, sisters, shareholders: aligned or adrift?

By 1+1 Strategy, Capital & Execution

When a business passes into the hands of siblings, a new dynamic is established.

It is no longer a question of vertical authority, but of horizontal co-ownership.

And in this new playing field, the main issue is neither fiscal nor operational.

This is human alignment.

"In 60% of family transmission failures, the cause is neither financial nor legal. It is relational."

—Family Firm Institute (FFI), 2023

So what do you do when roles are confused, expectations unclear, and emotions are still present?

You are a brotherhood of shareholders if…

• You make decisions together, but no one is really responsible.

• You never formalized your respective commitments.

• You never talk strategy… but everyone has an opinion.

• And you avoid certain topics because “it might hurt.”

Rest assured. This is not a failure.

But know this: untreated misalignment always ends up costing you dearly.

86% of family businesses recognize that tensions between shareholders affect their ability to grow.

—PwC Global Family Business Survey, 2023

5 concrete levers to build (or rebuild) alignment

1. Clarify everyone's true intentions

Not the postures. The deep intentions.

Harvard Business Review states:

“The number one cause of failure in family partnerships is the lack of alignment on the 'why' before the 'how'.”

Before talking about structure, start with:

• Where do you want to be in 5 years?

• What do you want to get out of this business: growth, revenue, impact, freedom?

• What is your real limit of involvement?

This moment of truth redefines the framework. It avoids unrealistic projections.

2. Formalize a solid and vibrant shareholder charter

“A family charter is not a contract. It is a constitution.”

—INSEAD Wendel International Center for Family Enterprise

It must address:

• The common vision (or compatible visions),

• Governance rules: strategic decisions, voting, shared information,

• Fair exit or buyout mechanisms,

• Conflict management.

A good charter prevents 80% of tensions.

But it does not replace dialogue. It frames it.

3. Align the strategic vision before distributing roles

McKinsey demonstrated this:

“Entrepreneurial families with a shared strategic vision generate an average 6% higher return over 10 years.”

Shared vision does not mean identical.

But it must be:

• Explicit,

• Documented,

• Revised annually.

If you can't answer "Why are we still co-owners" in 3 sentences, it's time to talk.

4. Structure governance, even on a small scale

It is not enough to “talk more often.” We must create formal spaces for decision-making.

Examples:

• A fraternal strategic committee (2–4 times per year),

• An advisory board with at least one independent external member,

• Clear roles: president, spokesperson, representative to employees or the board.

“What has no forum ends in personal tensions.”

— Susan Wilkinson, Family Governance Advisor

5. Invest in the relationship, not just in profitability

Family peace is an asset, not a luxury.

“Family businesses that maintain harmonious shareholder relationships have a survival rate twice as high over 25 years.”

— University of St. Gallen, Global Family Business Index

We are talking here about:

• Strategic weekends away from the office,

• Family retreats,

• Rituals of passage between generations (without pressure).

Because what you're building is more than EBITDA. It's a family trajectory.

Stay partners without ceasing to be family

Alignment is not a one-time decision.

It is a collective, iterative, demanding discipline.

At 1+1 Strategy, Capital & Execution, we help siblings do the legwork:

• Open real conversations,

• Structure good practices,

• Lay the foundations for a sustainable fraternal partnership.

The question is not “Can we get along?”

The real question is: “Do we have the tools to last together?”

Are you in this situation?

Request our shareholder charter template, or schedule a confidential workshop between family co-shareholders.