Subject category:
Strategy and General Management
Published by:
Babson College
Version: 14 March 2005
Length: 9 pages
Data source: Field research
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Abstract
When is a dollar not necessarily a dollar? The answer is: when friends and families are involved. This is a story of two families that started out as friends and wound up in court after disagreeing over a business deal from which both stood to gain. There may be many morals to the story, but the problem for students is to understand the dynamics of the settlement. Most disputes can eventually be resolved by courts, attorneys and time. But the resolutions may spawn a second set of problems. These, too, must be fully weighed and resolved. The challenge is to decide when it is time to put an end to an episode, to close the books both financially and emotionally. Settlements are designed to provide benefits for both sides in a dispute. But the choices they present may not always be a clear call. For family businesses, the decisions are not always easy, and there can be more than one way to measure true cost.
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Abstract
When is a dollar not necessarily a dollar? The answer is: when friends and families are involved. This is a story of two families that started out as friends and wound up in court after disagreeing over a business deal from which both stood to gain. There may be many morals to the story, but the problem for students is to understand the dynamics of the settlement. Most disputes can eventually be resolved by courts, attorneys and time. But the resolutions may spawn a second set of problems. These, too, must be fully weighed and resolved. The challenge is to decide when it is time to put an end to an episode, to close the books both financially and emotionally. Settlements are designed to provide benefits for both sides in a dispute. But the choices they present may not always be a clear call. For family businesses, the decisions are not always easy, and there can be more than one way to measure true cost.
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