The Book of Real-World Negotiations

15All in the Family: Business Negotiations with Baggage

Based on an interview with Geurt Jan De Haus

Family. Business. Two words that often go together, but sometimes don't integrate well. The problem is that family businesses are often run more like a family and less like a business. As a result, there is a lot of confusion on how to structure the business, assess the outcomes, and manage complicated relationships. As you might have guessed, all of these things and more require vast amounts of negotiation.

Negotiations in this context are often more complicated than simple business negotiations. There are layers of relationships intertwined, various family members involved, and long histories that can greatly conflate matters.

Such was the situation in this example. The familial dynamics were very strong, and there was a lot of relational baggage that became woven into the handing over of the business from one generation to the next. However, with the help of an outside consultant, a father and son were able to work through some difficult issues and find a way to create a well-thought-out succession plan.

Background and the Negotiation Challenge

The story begins with a father, Marcel, who had started a successful business selling medical equipment in Europe. The company was approaching 30 years in business, and there was one partner whom Marcel was able to eventually buy out. Buying his partner out was important for Marcel because he saw this as a family business and really ...