What Happens In A Family-Owned Business When A Member Wants To Sell Their Share

Autologica presents the second part in a series of articles that address common problems and issues in family-owned businesses. The articles are based on an interview between Al McClymont, CEO of Autologica Dealer Management Systems, and J.C. Aimetta, an expert and coach who specializes in family-owned businesses.

Al McClymont: Several companies I personally know of have suffered huge troubles that were even irreparable sometimes, both for the company itself and for the relationship among the members involved, the emotional relationships when a family member decides they want to, or that they need to sell their share of the family business.

J.C. Aimetta: Well, in these cases, the first thing one should think about is how to avoid this actually happening, how to prevent the possibility of this happening.

First of all, we must distinguish between a person who sells because they want to, from a person who sells because they have to, because they have no choice, because they need the money for an urgent personal situation, an illness, a child who has a scholarship abroad, or something like that.

In this type of situation, the family-owned business should have a liquidity fund to be available, under equal conditions, for all partners to use in cases of personal emergencies. This liquidity fund, generally placed in investments that can quickly be turned into cash, implies an immobilization of funds that the family business usually does not want to have. But it is a guarantee, when an emergency situation arises, that prevents someone from being forced to sell their part.

Another thing to consider is that no one can sell unless there is someone willing to buy. Therefore, when someone wants to sell their part, it should be stipulated, written and signed, to whom the part must be offered. Because it is not the same to offer it to a brother, to a cousin, to the company itself (the company can reabsorb the partners part), or to a third party. Because when an angry family member decides to sell to someone who is not a part of the family, they are immediately including among the owners a person who is not a family member. In summary: the company stops being a family business.

In the next part of this interview, well talk about how a family-owned business can reconcile the interests of family members who work in the company, with the interests of those members who dont.

Al McClymont is founder and CEO of Autologica S.A. Founded in 1994, Autologica helps automotive, agricultural and construction equipment dealers increase their bottom line through the use of its Windows-based Dealer Management System and CRM tools. Autologica has a presence in South Africa, the Middle East, Asia Pacific, Mexico and South America. Read more at http://www.autologica.net.Matrix Trench Coat
Jesus T Shirts
Portland Fire Department Oregon
Kt159
0 Car Deal Finance New
Bahamas Trip Special
04 Airline Deal Travel
Free Tv Channel For Pc
Sims 2 Code X Xbox
Myspace Profile Pic
Subaru 360
North Carolina Car Accident Lawyer
1 800 Adopt A Pet
Dallas In Loan Mortgage Processing Training Tx
Residence Inn Scottsdale
Direct Tv Dsl
Clearance Fair Job Security
Nj Speed Dating
Niagra Falls Indoor Water Park
2 Cheat Free Play Station Super
1 Dartmouth Furniture Gallery
Acne Body Product
Instant Loan Personal Us
Heavy Highway Construction Jobs
Book Cook Fat Low Mexican Ultimate
Gasoline Calculator For Cars
Healthy Diet Menu
Fake Celebrity Picture
Halloween Costumes Children
Home Job Online Opportunity Work
Hotel Directory For Germany
Recipe Cooking
Table Tennis Drill
River Museum
Flight To London Gatwick
Northern Virginia High School Football
Dump Truck Sales
Cartes Virtuelle
Art Culinary Georgia School
1 6 Book Law
Internet Radio Station Software
Radio Station In Seattle
Flower Delivery Flower Online
Central Park West Rehabilitation Center
Chanel Handbag Purse Wallet
Metal Stock
007 Xbox
Loan Make Money More Ways
Affordable College Health Insurance Student
07 2006 Almanac Farmer Outlook Winter
Wholesale Candy Vending
How To Become A Pro Football Player
Hiking Texas Trail
Golf Houston Magazine
Indianapolis Open Restaurant Thanksgiving
1 800 Reconex
Dating Free Matchmaking Online Personals
Free Bank Account No Credit Check
Tv Repair Diagnosis
Washington Snow Storm
Montana Deer Hunts
Man Mcfarlane Shirt Spider
Lead Poison Lawyers Ny
Hungary Embassy
Mantis Garden Tiller
Mtv Made Application
15 Year Fixed Mortgage Rates
Weight Loss Surgery Doctor
Coach Gift Tennis
Beach Florida Reception Wedding
Dating Internet Online Personal Service
Irish Offshore Bank Account
Contemporary Magazine Rack
Loft Bed With Desk
Medical Mutual Of Ohio Health Insurance
Construction Inspector Jobs
Usa Funding
Massages Tushy
Kt76
Phoenix Trailers
Night Club Denver
Antonio Cafe Forest Rain San Tx
Day Poem Sister Wedding
Luxury Custom Homes Commercial Condo Projects Builder
Gift Herbal Tea
Detox Playlist
Winthrop Harbor
Cheap Minivan Rental
Best Florida In Orlando Restaurant
Defective Product Attorneys California
Male Enhancement Picture
Dublin Morristown Nj Pub
Pilot Job
Protective Mattress Cover
Education Forex Trader Training
Information Cancer
Xbox Console Free X
Northern Michigan Real Estate Listing
Infrared Bullet Camera
Family Health Insurance Veteran
Cheap Mount Tv Wall
Customer Relationship Management Com
Own Franchise Business
Indian Dating Site
04 Airline Deal Travel
07 2006 Almanac Farmer
365 Enlightenment Enriching Life Living Steps Year
Blood Donate Money
Extended Stay Hotels Orlando
Lift Actuator
Coach Fake Shoes