Case Detail

Case Summary

Keddeg Company (A): Succession to the Next Generation of Small Business

Case Number: 5-107-012(A), Year Published: 2007

HBS Number: KEL369

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Authors: John Ward; Carol Adler Zsolnay

Key Concepts

Family Business, Entrepreneurship, Small Business, Succession Planning, SWOT Analysis, Shareholder Value, Leadership

Abstract

A married couple who have a successful industrial B2B business evaluate whether or not to sell the business to two of their offspring, who are both entrepreneurial MBA graduates. Complicating factors include the fact that the sale price and structure need to finance the couple’s retirement and give fair inheritance treatment to the remaining siblings. In addition, the father has had some health issues and the business is doing well, so there is a lot of forward momentum to sell to the next generation.

Learning Objectives

Evaluate whether or not, and how, to keep a business founded and run by entrepreneurs as a family business into the sibling generation. Explore “escalation of commitment” and how it influences decisions to keep the business in the family or not.

Number of Pages: 8

Extended Case Information

Teaching Areas: Family Business

Geographic: United States

Industry: Aeronautical after-market parts manufacturing

Organization Name: Keddeg Company

Organization Size: Small

Decision Maker Position: President and Owner

Decision Maker Gender: Male

Year of Case: 2006