How Do You Navigate a Family Business in Crisis Without Losing Everything? 

An inside look at how Richter’s Business Family Office advisors helped a family avoid a costly shareholder dispute and preserve a lasting legacy.

It’s a cautionary tale for family enterprises: success can sometimes shine a light on deep-seeded issues that once lurked in the shadows. This was the case for this family. When the second generation took the reins of their family business, revenues grew by 85% in two short years. But managing the enterprise began to chip away at a rift amongst the siblings regarding the future direction of the business.

Their father had built the company from the ground up. Now, with his three children at the helm, key questions about the company’s direction created tension: should they continue expanding? Should they sell while the value was high? Conflicting priorities and communication breakdowns turned into a full-blown shareholder dispute.

What was at stake for the family?

The risks were significant. If left unresolved, the dispute could have triggered dramatic changes to the business. “At the time we commenced our support of the family shareholders, it was clear the legacy was entirely uncertain,” says Richter partner, Bill McLean who leads the Business Family Transition area. “The question was, how do we come to a solution that could be accepted by all?”

Without a supported process, the family faced the possibility of a lengthy and expensive legal battle, potentially involving skyrocketing legal fees alone. Even worse, a legal battle over division of assets would have likely devalued the business, threatening all their father had spent decades building.

Who helped them find a way forward?

This was much less about numbers. It was about emotions, relationships, and legacy. The family was referred to Richter Family Office’s advisors who specialize in business family transitions; experts who help families navigate shareholder conflict, dispute resolution, and business/family governance within complex family enterprises. The approach fully acknowledged the family members exactly where they were: seeking to understand tensions, identifying underlying issues, and eventually guiding them toward a collaborative solution.

What did the process look like?

The family’s situation wasn’t going to be solved overnight. The Richter team worked with them for over 12 months to untangle years of unspoken resentment, unclear roles, and clashing visions. One very important component was a collaboration wherein Richter’s partners with business valuation expertise assisted in the process, helping to ensure the negotiation process was based on objective data, not personal assumptions.

Through active facilitation sessions, supportive coaching, and strategic communication planning, a path forward began to take shape. “This avoided what could have become a very painful and public battle that would have dragged on and burned resources on all sides,” says McLean. “Beyond the significant amount of money the family saved, more importantly the legacy was preserved.”

What was the outcome?

Eventually, the siblings aligned on a common vision that resulted in two of them buying out the third sibling. The family walked away not only with a successful business transition, but could now also focus on repairing relationships. A business that might have been sold off in pieces or devalued in court has retained its strength and reputation in the market. And while not every family dispute ends with everyone at the same table, this one was resolved with mutual respect and determining a sustainable path forward.

“Looking back, I realize we would have had a very different outcome had we not had this support from Richter,” said one family member. “They weren’t just advisors, they were often interpreters, and constantly encouraged us to pursue the best possible path forward. They were many times the calming voice in the room.”

Facing a shareholder dispute or family business transition?

Richter Family Office’s team of professionals who represent a diverse suite of expertise can help you navigate even the most complex situations with clarity and care.

Visit Richter Family Office to connect with our advisory team.