- 15 O Exercise 9-5 All In the Family: The Company in the Hands of the Second Generation You have recently started a business as a consultant to small businesses and are ready to begin work with your first client. It is a million dollar-a-year technical services company that was started by two friends, Sherman and Kelly, 20 years ago. Kelly is a little older than Sherman and has reduced his work schedule to part time. Sherman is still working full time, but would like to slow down and enjoy the fruits of his labor. Each has three children. Kelly has two sons and a daughter, all of whom have worked in the business at one time or another. Kelly has a very good relationship with all of his children. Sherman has two daughters who have never had any interest in the business and a son, J.R., who had worked in the business for a time until he and Sherman had a falling out when Sherman divorced J.R.'s mother 15 years ago. It was a bitter divorce that had a very negative impact on Sherman's relationship with his children, especially his son. They had no contact for a number of years. While the ice has thawed a bit in recent years, the relationship is still very strained. Sherman and Kelly want you to help them decide who should take over the busi- ness when they retire. You will be meeting with them for the first time tomorrow and are thinking about how you will approach the situation. You understand the importance of this job. It could chart the course for your consulting business for years to come. You want to be prepared and have decided that you should go in with a list of prepared questions to help you gain a better understanding of the business and all the people involved. Identify information that you will gather in preparation for your meeting with the partners and draft a list of questions that you will ask them to help you assess the situation.
- 15 O Exercise 9-5 All In the Family: The Company in the Hands of the Second Generation You have recently started a business as a consultant to small businesses and are ready to begin work with your first client. It is a million dollar-a-year technical services company that was started by two friends, Sherman and Kelly, 20 years ago. Kelly is a little older than Sherman and has reduced his work schedule to part time. Sherman is still working full time, but would like to slow down and enjoy the fruits of his labor. Each has three children. Kelly has two sons and a daughter, all of whom have worked in the business at one time or another. Kelly has a very good relationship with all of his children. Sherman has two daughters who have never had any interest in the business and a son, J.R., who had worked in the business for a time until he and Sherman had a falling out when Sherman divorced J.R.'s mother 15 years ago. It was a bitter divorce that had a very negative impact on Sherman's relationship with his children, especially his son. They had no contact for a number of years. While the ice has thawed a bit in recent years, the relationship is still very strained. Sherman and Kelly want you to help them decide who should take over the busi- ness when they retire. You will be meeting with them for the first time tomorrow and are thinking about how you will approach the situation. You understand the importance of this job. It could chart the course for your consulting business for years to come. You want to be prepared and have decided that you should go in with a list of prepared questions to help you gain a better understanding of the business and all the people involved. Identify information that you will gather in preparation for your meeting with the partners and draft a list of questions that you will ask them to help you assess the situation.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Question
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15
O
Exercise 9-5 All In the Family: The Company in the Hands of the Second
Generation
You have recently started a business as a consultant to small businesses and are ready
to begin work with your first client. It is a million dollar-a-year technical services
company that was started by two friends, Sherman and Kelly, 20 years ago. Kelly is a
little older than Sherman and has reduced his work schedule to part time. Sherman is
still working full time, but would like to slow down and enjoy the fruits of his labor.
Each has three children. Kelly has two sons and a daughter, all of whom have worked
in the business at one time or another. Kelly has a very good relationship with all of his
children. Sherman has two daughters who have never had any interest in the business
and a son, J.R., who had worked in the business for a time until he and Sherman had a
falling out when Sherman divorced J.R.'s mother 15 years ago. It was a bitter divorce
that had a very negative impact on Sherman's relationship with his children, especially
his son. They had no contact for a number of years. While the ice has thawed a bit in
recent years, the relationship is still very strained.
Sherman and Kelly want you to help them decide who should take over the busi-
ness when they retire. You will be meeting with them for the first time tomorrow and
are thinking about how you will approach the situation. You understand the importance
of this job. It could chart the course for your consulting business for years to come. You
want to be prepared and have decided that you should go in with a list of prepared
questions to help you gain a better understanding of the business and all the people
involved. Identify information that you will gather in preparation for your meeting
with the partners and draft a list of questions that you will ask them to help you assess
the situation.
Expert Solution
Step 1
In order to run a successful business, First and the foremost thing that is very important to have is a keen interest in that business. Secondly, if anybody wants to transfer the business to his/her family members, those members should have positive frame of mind and accept the responsibilities happily and keenly.
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