Family Business feuds often erupt in family businesses. There is usually a certain amount of drama within any family, and it can be manifested quickly in a family business setting.
Feuds in the smaller family business are not as big a problem as they are in larger family businesses. A parent/child, or sibling, owned family business dispute can usually be resolved quickly with a simple discussion.
However, the problem can't be bottled up by one of the family members involved, just hoping it goes away. In any business relationship, every issue must be brought out into the open and resolved quickly.
For the larger family owned business, with several family members as owners, family business conflicts can drag down the entire business if not addressed early.
This is especially true where there are family members who are owners, but not employees, and have no day-to-day contact with the business.
Here are some of the ways that family business feuds can be handled properly:
Unfortunately, the larger the family and the more family members who are involved, the greater the possibility of having family business feuds. That is why it is so important to set up a system for handling conflicts right from the start—in the original family business plan.
It is also always best to resolve all issues and conflicts quickly, before they turn into a family business feud. Don't let concerns and issues fester and stew—and by all means stay out of court.
In the event a conflict cannot be resolved reasonably, the obvious alternative is to buy out the complaining owner.
That is another reason to always have buy/sell agreements put into place when creating a family business, so that retiring owners, deceased or incapacitated owners, or disgruntled owners can sell their interest at a fair price.
When all of this is agreed to in advance—family business feuds are kept to a minimum.
There will always come a time when someone in the family must sell their stock, and since it is never traded publicly it is difficult to put a value on it.
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