ABSTRACT
When a family decides to sell its business it is often experienced as a loss for the family and/or founder. A sale of the business is, by far, the most frequent exit choice for owners of smaller to mid-sized businesses (Coad, 2013). While selling a business often can trigger a perception of failure, it can equally be the result of a careful strategic process. The family may be selling the business to an employee, or revenues from the sale of one family-owned business may be used to invest in a bigger enterprise. If the business continues to thrive under new owners, and the family profited from the sale, it is hardly accurate to categorize this as failure. Options include putting the company on the stockmarket, selling the business to other family members and a management buyout. At the same time disagreement within the family over whether to sell or not can cause family tension, ruptures and unhappiness. Family members will feel this more strongly than others involved in the firm; some may support the sale while others may be opposed, resulting in painful conflicts.
