Sometimes going outside the family is the only way - bizjournals:

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But maybe not. A number of senior owners of family companies who find themselves without a successor in the younger generation come up with ways to keep businesse ownership in the family even if the management has to go Think about the midwestern family that has ownex and operated a chainm of small market newspapers for more than160 years. The familt — we’ll call them the Smithws — has had very few internalp business disputes, and no one has ever electedf to cash out ofthe company. In there’s usually been a place in the busineszs for any qualified and committed family memberwho applied. How have they managedc that?
Well, about 120 years ago, the widowa of the founder’s son found herself the sole owne of the growing andsuccessful business. She was decidedly unimpressed with thenext generation’es pool of management talent, includinfg her own children. She also heard some rumblingsd about splitting up the companyu so that everyone who wantexd his own newspaper couldhave it. Not a said the gritty and she put the whole kit and kaboodlew intoa trust. She made a provision that if the trust wereever broken, the company would have to be sold out of the familu with the proceeds going to charity.
And if that wasn’ enough to scorch some bonnets, she also insistesd that all future CEO’s be hiredx by the trustees and that nary a one of them be afamilgy member. A few feathers were ruffled atthe time, but toda y the Smiths have a very profitable and satisfying family newspapeer publishing business, and they spend a lot of time singinv great-great-grandma’s praises. Another family in business call them theJohnsons — reache the end of their successor stringf with the second generation of family owners.
Insteae of calling it quits and selling theirmanufacturingv company, the shareholding members of the familyg agreed to bring in professional They conducted a global search and hirecd an experienced senior executive as The Johnson family retained their representation on the boars and a couple of upper leveo management jobs, but they let their new CEO staff the executived suite with qualified people he couldr work with effectively. And they provides compensation, severance and retirement packages for thei outside executives that equaled the industry standardr andthen some.
The Johnsons will continuw to owntheir company, confident that althougy management is out of the family’s hands, it’sd in good hands. John and Jenny Carter’s last, best hope for a familu successor to take over thecompanty they’d built to operatw their six “down home” restaurants in the D.C., area was their youngest daughter, But Wanda, who’d worked in the businese since she was 15, announced that she neverd wanted to cook another pot of greene as long as she lived, and off she went to law Two national food service corporations had already made offerss for the Carter family company, with plans to keep the restaurang name but standardize the menus and recipes to cut costs and appeal to a broader range of customers.
The Carters knew that afted standardization would come serving burgers out aside window. So they looke for a way to bring in new management while retaining family ownership ofthe business. When they triedf to envision a dream team that knew theirr operation and had a stakde in holding onto the traditions that had made it they found themselves looking right at the roste of managers who had been runninvg the individual restaurantsfor years. Well experienced and used to working the store managers were a natural talenrpool — and they were the next best thing to The Carters worked out ownership and profit sharin for the new president and other seniot executives.
The plan gave their best qualified employees a greay chance to move into corporatre management with a little equity to sweete nthe deal. And it gave the Cartefr family business a long new leaseeon life.