Conflict is both an unavoidable by-product of the human experience and an integral part of family enterprise ownership. Conflict itself is neither good nor bad — growth and development typically require some degree of dynamic tension. However, there are better and worse ways of managing this conflict. Business families that thrive learn to manage conflict constructively and treat this as an essential skill that improves their odds of continuity, though these skills don’t always come naturally.

Conflicts also need to be distinguished from mere disagreements or disputes, which can usually be resolved through negotiation. In contrast, conflicts contain an emotional component that implies value judgments or core principles that are non-negotiable. They are often rooted in deeper historical resentments — particularly where some family members harbor long lists of how they were wronged or what they are owed and what should be done to make amends. These are what we call ‘historical impasses’, and they are quite common in families, are easily inherited, and therefore survive for generations, potentially causing deep emotional and economic distress.