To Mumbai with Love: Exiting the Family Firm
(9 pages of text)
It was the summer of 2015 when the son of a family-owned real estate business in Vancouver was struck by love and decided to follow his heart to India. However, leaving his family’s business was easier said than done. The family had no formal documents that provided members with an exit strategy or remuneration. There were no wills or financial plans, and whatever money was available to finance a move abroad was tied up in the family business, which was operating at a loss. At stake was the pending sale of a commercial property that could inject nearly $3 million into the family’s coffers. Before leaving, which short- and long-term issues needed to be addressed to ensure the business and the family estate were prepared for the future? How should the family move forward when faced with the realization that the children might not be interested in taking over the business?
This case is suitable for use in MBA and other graduate-level management programs in courses on family business, strategic planning, compensation, entrepreneurship, financial planning, real estate, and managing family relationships. After completion of the case, students will be able to
- map current and potential future states of the family firm;
- identify key decisions to be made, both short-term and long-term;
- set goals for the family firm and distinguish between business and family goals; and
- interpret the principles of fairness and equality to address compensation issues.
Real Estate and Rental and Leasing
Canada, Small, 2015
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