Tuesday, May 26, 2015

Family Values Vital To Successful Corporate Marriage

By Co-Director of CEIBS Centre for Family Heritage and Professor of Finance and Accounting Oliver Rui

Selling the family home is an emotionally charged process at every stage. Besides concerns about the new owners and any changes they might make to the property, family members may disagree on how to handle the many financial aspects of a sale and these disagreements can have a negative financial impact. Research shows that homes sold by estates tend to sell at a discount to comparable homes on the market, largely because the sellers are making decisions with their hearts instead of their heads.

You can easily imagine, then, what happens when the owners of a family business decide to sell. The emotional issues are similar however the stakes are significantly higher, amplifying potential disagreements and financial issues among family members. When buyers are tone-deaf to these issues it can derail a deal. Read more on Forbes.com

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