Kathie Sadler has worked with family businesses her entire life. Her grandfather founded a manufacturing company in New Zealand that was very much a family affair, with her uncles and mother all involved. As a child, she would help her grandfather with paperwork on Sundays. In school holidays, she and her siblings/cousins would help out in the factory. After graduating from law school, she worked for a firm where most clients were family businesses. Throughout her career, she has represented many family businesses across different industries. One common mistake she sees is families failing to properly protect and store their intellectual property and company knowledge, which can reduce business value over time. Effective communication is essential for family businesses to understand roles and avoid conflicts

1. Three minuteswith…
Kathie Sadler
AccreditedAdvisor,FamilyBusinessAustralia
How long have you beenworking withfamily businesses?
All mylife!
My grandfatherfounded the onlycompanyinNew Zealandwhichmanufacturedelements. Itwas a real
family affair.Bothmyunclesstartedout inthe businessandmymotherhelpedwiththe books.
I rememberasa childeverySundayhelpingmygrandfather withhispaperwork. Iwould sortthe
invoices,receiptsandcheques,intopilesonthe floorof the lounge room.
Whenwe were growingupmy brothersandsisters,cousinsandI all helpedoutonthe factoryfloorin
the school holidays.
My uncle tookoverthe business andranit until itwassoldto a multinational.
But I still have the photographsof the businessandthe cartoonsof mygrandfatherframed,toremind
me of my rootsin familybusinessesandthe commitmenttothe familyvaluesandintegrityinstilledinus
by mygrandfather.
As a lawyerIhave workedwitha lotof familybusinesses.
WhenI startedas an articledclerk aftergraduatingfromthe Universityof Queensland,Iworkedinthe
rural divisionof CannanandPeterson(now NortonRose) wheremostof the clientswere involvedin
familybusinesses.
Since thenmy practice has alwaysinvolved alotof familybusinessesinawide range of sectorsincluding
manufacturing,sales,franchising,consulting,finance andservices.
I have lovedit!
What’sone of the most common mistakesyou see in familybusinesses?
Oftenall the know-howandprocessesbuiltupbythe familyovertime –the intellectual propertyof the
firm– are not capturedstoredand protectedina formal way.
Andthat is a riskthat can significantlyreduce the value of acompany overtime.
I feel verystronglyabout that.One of my keyareasof practice isintellectual propertyanddata
protection andI take those mattersveryseriously.
Brands andthe companyvalue canbe severelyadverselyaffectedbyacompanynot protectingits
intellectual property,dataorthe personal informationitholds.

2. What is your “uhha” moment withyour clients?
Justbecause itis a familybusiness doesnotmeanthateveryone isgoingtogeton, be on the same page,
have the same views, see the companygoinginthe same direction –or evenwantto workinthe
business.
Communicationisessential.
From the start, it’sveryimportantforeveryone in afamilycompanytounderstandthe dynamicsand
the individual roles andresponsibilities.
It isalso essentialtounderstandwhere there isa potential forconflictordisagreementorjust “niggles”.
But inthe end,nothingismore importantthan the family itself.The businessshould neverbecome a
source of festeringconflictthat damagesthose importantbondsandrelationships.