Most third-generation businesses do not survive. When Dan Garlock’s father told him that second-generation businesses fail at a very high rate, Dan heard it as a challenge. Now, as he prepares his sons, Noah and Luke, to possibly take over Silver Lake Auto & Tire Centers, he faces those odds again. His answer is preparation.
In episode 139 of Maximum Octane, Kim Hickey and Jason Patel talk with Dan, Noah, and Luke about multi-generational succession. Dan shares the family’s journey from his father’s 1973 Shell station to second-generation ownership, why he chose not to force his sons into the business, and how he is exposing them to every part of the operation. Noah and Luke share what they have learned and where they want to grow.
What You Will Learn
- How Dan’s family went from gas stations to independent auto repair
- Why running a business “like a family” creates problems instead of solutions
- The full story of Silver Lake’s evolution from his dad’s startup to second-generation ownership
- Why Dan decided not to force his sons into the family business
- The importance of exposing kids to different roles and departments early
- What Noah learned from service advising and customer interaction
- Luke’s perspective on wanting more exposure to the business and management side
- The gap in knowledge Noah identified and why that matters for succession
- Noah’s perspective on acknowledging the head start the business gives him
- Luke’s advice: start early and get deeper into different business sides
- Dan’s recommendation: surround yourself with mentors who’ve done this successfully
From Gas Stations to Auto Repair
Dan opens with how his family moved from gas stations to independent auto repair. His father, Wally, opened a Shell station in 1973. Over the years, the business pivoted and grew, and in 2015, Dan and his brother Darren bought it. That history gives Dan a firsthand view of what it takes to pass a business from one generation to the next.
Stories like this one are a reminder that a family business is rarely the same business from one generation to the next. A fuel station, a tire and service center, and a modern multi-bay repair operation each require different skills, equipment, and leadership. That has real implications for succession. The next generation should not be prepared to run the business as it exists today, but to lead it through whatever it needs to become. That means teaching adaptability and decision-making alongside technical and operational knowledge, so the successor can make the next pivot when the market calls for it.
Why “Like a Family” Can Backfire
Around the 2 minute mark, Dan explains why running a business “like a family” can create problems instead of solutions. Family dynamics can blur roles, make accountability uncomfortable, and lead to decisions based on relationships rather than results. Clear structure protects both the family and the business. Kelli and Lee Weatherby share similar lessons in Mixing Business and Family the Right Way.
On the shop floor, this problem often shows up in small ways. A family member arrives late and nobody says anything. A relative is paid more than the role is worth, or less than they deserve, because the conversation is uncomfortable. Non-family employees notice these exceptions, and they quietly decide whether the standards apply to everyone. One practical approach is to write job descriptions, pay plans, and performance expectations for family members exactly as you would for anyone else, and to have someone other than a parent handle at least part of their feedback. That keeps Thanksgiving dinner from turning into a performance review.
Do Not Force the Next Generation
Dan explains why he decided not to force his sons into the family business. Children who join because they want to are far more committed than those who feel obligated. Giving them the choice, along with real exposure to the business, lets them make an informed decision.
Giving children a real choice also means being ready for them to say no. Some owners find that difficult, especially when the business carries a family name. But a successor who stays out of obligation may struggle through the hard years of ownership, and that can put both the business and the relationship at risk. If the next generation chooses a different path, the owner still has options: selling to a key employee, bringing in an outside buyer, or building a management team that can run the shop. Knowing that early gives everyone time to plan instead of reacting.
Expose the Next Generation Early
Around the 18 minute mark, Dan stresses the importance of exposing kids to different roles and departments early. Rather than handing over the keys, he lets his sons work their way up and shadow different areas. Noah shares what he learned from service advising and customer interaction, and Luke explains his desire for more exposure to management and the business side.
A structured rotation can make this exposure more useful. A successor might spend time as a lube or general service technician, then work the counter as a service advisor, then sit with the owner on financial reviews, vendor negotiations, and hiring decisions. Each stage should come with clear expectations and a real supervisor, not just a parent checking in. The goal is not to make the successor an expert at every job. It is to help them understand how each role affects the others, earn credibility with the team, and see where their own strengths and gaps really are.
Acknowledging the Head Start
Noah reflects on the head start the business gives him and the responsibility that comes with it. Kim and Jason highlight the humility and willingness to learn that Noah and Luke bring, the opposite of entitlement.
Advice From the Next Generation
Around the 34 minute mark, Luke advises others to start early and get deeper into different sides of the business. Dan’s recommendation is to surround yourself with mentors who have successfully navigated multi-generational transitions.
ATI’s Succession Planning Blueprint and Peer Networking Groups can help owners plan and find those mentors.
Mentors outside the family bring something parents often cannot: distance. An experienced owner who has already handed off a business can ask hard questions about money, roles, and timing without the emotional history that comes with a parent and child. Many successions also benefit from professional advisors, such as an attorney, a CPA, and a financial planner, who can help with ownership transfer, tax considerations, and the retiring owner’s income. Bringing those advisors in years before the handoff, rather than months, gives the family more choices and fewer surprises.
ATI’s Succession Planning Blueprint outlines the questions owners should be working through well before a transition date.
Common Mistakes in Family Succession
Multi-generational transitions tend to stumble for similar reasons, regardless of the size of the shop. Watching for these patterns can help families avoid them.
- Assuming the next generation is interested. Many owners never ask directly. A clear, honest conversation is the starting point for every plan.
- Waiting too long to start. A meaningful transition often takes years. Leadership skills, customer relationships, and team trust cannot be handed over at a closing table.
- Handing over the title without the authority. Some owners name a successor but continue making every decision. That confuses the team and stalls the successor’s growth.
- Ignoring fairness among siblings. When some children work in the business and others do not, ownership and inheritance questions can strain relationships. Professional advice helps families plan for this openly.
- Skipping the written plan. Good intentions are not a plan. Document roles, timelines, ownership terms, and what happens if circumstances change.
How to Start the Conversation This Month
Owners who have not yet discussed succession with their family do not need a finished plan to begin. A simple first step is to schedule a dedicated conversation, away from the shop and outside the normal family routine, and treat it as a business meeting. Share your own goals, including roughly when you would like to step back and what you need financially. Then ask your children what they want, and listen without trying to persuade them.
From there, agree on one or two next steps, such as a summer working in a specific department, a meeting with the shop’s accountant, or attending an industry event together. Small, concrete steps build momentum and reveal quickly whether the interest is real. Revisit the conversation every few months so the plan grows as everyone learns more.
Family Succession Questions
- Have you asked your children whether they want to be part of the business?
- Which roles could they experience over the next few years?
- What structure separates family relationships from business decisions?
- Who has navigated a family transition and could mentor you?
For more on succession, listen to Eric Goodnoe in How Ready Are You for Your Business’ Succession. Dan also discusses recruiting in Cracking the Recruitment Code.
Frequently Asked Questions
How do I know if my child is ready to take over my auto repair shop?
Readiness shows up in behavior, not just interest. Look for whether they have worked in several roles, earned the respect of non-family employees, handled difficult customers, and understood the shop’s financial statements. Ask whether the team would follow them if you were gone for a month. A gradual approach, where the successor takes on real decisions with your support before the formal handoff, is the most reliable way to find out.
When should a shop owner start planning family succession?
Earlier than most owners expect. Many advisors suggest starting several years before the intended transition, because building leadership skills, transferring customer and vendor relationships, and structuring ownership for tax purposes all take time. Starting early also gives you room to change course if a child decides the business is not for them. Even if retirement feels far away, a basic plan protects the family if something unexpected happens.
Should family members in the business be paid differently from other employees?
In general, family members should be paid according to the role they perform and the results they deliver, using the same pay structure as everyone else in that position. Paying a relative well above market can create resentment, while underpaying them can create frustration and a sense that their work is not valued. If ownership or distributions are part of the picture, keep those separate from wages and discuss them with your accountant.
What if none of my children want to take over the business?
That is common, and it does not mean the business cannot continue. Owners can sell to a key employee or management team, sell to an outside buyer, or merge with another shop. Each option works best when the business runs on documented systems and does not depend entirely on the owner. Getting a professional valuation and building leadership depth now will give you stronger choices later, whoever the buyer turns out to be.
How can I keep family conflict out of business decisions?
Clear structure is the best protection. Define roles and reporting lines, write down expectations, and hold regular business meetings separate from family time. Use objective measures, such as productivity, gross profit, and customer satisfaction, to discuss performance. When disagreements become personal, an outside advisor, coach, or peer group can help the family see the issue as a business question rather than a relationship test.
Resources and Links From This Episode
Connect With the Guests
- Dan Garlock: LinkedIn, Silver Lake Auto & Tire Centers
