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| Family Values Can Cause Disagreements (Con't) By Roger J. Warrum |
| The brother-in-law explains that her husband must have been very wrong about what he thought the
value was. We now have the ingredients for a full-scale war. What if the deceased brother was wrong about the value and it is much less than he estimated? It doesn't matter. Perception is reality and the deceased brother's wife is now convinced that he is taking advantage of her. Soon she's off to her attorney and we are off to the races. The true value of the business is not always the most important value. Potential family feuds are usually caused over fairness and equality issues. One of the easiest ways to get a fight started in the fairness and equality arena is after the death of one of the stockholders. Consequently, maybe the most important value is the perceived family value. What can you do to avoid this problem? (1.) Put all of the family members, in-laws and outlaws in a room every year and agree on a perceived value of the business. (2.) Hire a professional to give you a quality evaluation at the beginning of the process. (3.) Communicate with the family members concerning any major issues that may affect the value. (4.) Don't expect the spouses to do all of the communication with the at-home members of the family. Remember that it is not what it is worth that usually starts the war, it is what they think it is worth. |
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