Unique Challenges in Family Business Conflicts
In family businesses, conflicts often arise that are distinct from those in non-family firms, typically revolving around succession or the disposition of business segments. Disputes regarding the valuation of a family business can lead to intense discussions. Engaging an external advisor for conflict resolution can help prevent further escalation.
Sustainable Resolution with Family Considerations
Given the emotional ties in family businesses, it is crucial to resolve disputes sustainably while considering family relationships. There are numerous potential causes of conflicts, and we have encountered many in our practice.
Methods of Conflict Resolution
Mediation
Disputes are sometimes settled through mediation. However, mediation can be a lengthy process and may not be compatible with family dynamics. Mediators typically act as facilitators rather than active participants in resolving conflicts. We believe in more effective conflict resolution techniques where parties reach solutions through explanation and negotiation. Clarifying facts, such as conducting a valuation of the company, can be pivotal.
Assessing Facts for Resolution
Conflicts can be resolved by carefully assessing the facts, for instance, by conducting a company (share) valuation. This often provides insights that lead to solutions. At Clifton Finance, we use various valuation methods, considering market transactions and employing advanced calculation techniques. Our extensive experience allows us to select the most pragmatic approach, with clear reporting that helps bring parties closer together.
Conflict Resolution by Clifton Finance
Clifton Finance’s extensive experience with family-owned businesses enables us to guide all parties towards practical and effective resolutions. Our approach offers several advantages over traditional conflict resolution methods, including:
- Deep understanding of family business dynamics
- Prompt action to minimize costs
- Informal procedures
- A creative and active role in mediation
- Focus on maintaining family relationships
Each year, Clifton Finance, in collaboration with the law firm Wintertaling and the family business advisory firm De Kuijper Concepts, organizes a dinner for family businesses. This event addresses conflicts, solutions, and other relevant topics.
