8/25/2023 0 Comments Family feud set for sale“That tension often forms the basis for disagreements on how the business should be run.”Īll such conflicts get bigger and scarier as the family gets larger. “Very often there is a tension between ‘savers’ and ‘spenders’ in a family,” says Schwerzler. Save or spend?Ĭonflicts often arise over financial strategies that impact individual pocketbooks. So his stock had to be purchased by the other three-resulting in an expensive restructure of the strategic plan. One shareholder balked at signing for the loan. ◊ Three of four shareholder siblings wanted to borrow $500,000 to make business improvements. As a result the business needed to be liquidated. ◊ Shareholder siblings had such major disagreements that the business could not move forward. To avoid a destructive addition to the management team, the business had to buy out the ex-spouse-at a significantly higher price than the stock’s value. ◊ When one family member got a divorce, half of his stock went to an ex-spouse with no business experience. Schwerzler offered three illustrative scenarios that recently crossed his desk: Decisions are made not necessarily on what’s best for the business but what’s best for the family. “But in a family business you have rational problems and emotional solutions. “In a non-family business you have rational problems and rational solutions,” says Don Schwerzler, an Atlanta-based family business counselor. How many ways can a family business get into trouble? Maybe an infinite number, if the stories told by family business consultants are any guide.
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