4 ms·

In the next years I’ll have to face the same question. One of my parents manages and also own a part of a century old company, I’m sure must be one of the olde

In the next years I’ll have to face the same question. One of my parents manages and also own a part of a century old company, I’m sure must be one of the oldest continually running companies in my country. After a century though, the percentage of the company that we actually own is smallish, perhaps about 20%, and the rest is owned by more distant relatives not involved in the administration. One part of me would like to continue running the company, even though I’d have to take a pay cut. But it would only make sense if I owned a larger part of the business, which would be by its own an expensive thing to do.

raincom 4y ago
If your distant relatives don't have smarts to run that business, just buy them out at discount.
- dagw 4y ago
  Why would they accept a discount over what they could get if they just sold the whole company? In my experience of these situations it has little to do with the lack of "smarts" and everything to do with the lack of time and interest. In fact in many cases the 'smart' thing to do is to just sell and walk away, and the decision to keep going is more based on various notions of family 'loyalty' and tradition and responsibility, rather than actual "business smarts".
human_person 4y ago
Have you mentioned that to your distant relatives? They might be more interested in x/2% (or even x/4%) of something, instead of x% of nothing. I guess worse case they would try to help with admin.
simne 4y ago
> But it would only make sense if I owned a larger part of the business Co-owned companies are not easy to run, but when You have more than 10% of shares, You already have hard matter, which You could use as foundations for future grow of Your shares, if other coowners are not smart/experienced enough. And You don't need to make deal with daemon, in most cases You just need to know very well, what You really want in Your life and what You want to pay for it.

raincom 4y ago

If your distant relatives don't have smarts to run that business, just buy them out at discount.

dagw 4y ago
Why would they accept a discount over what they could get if they just sold the whole company? In my experience of these situations it has little to do with the lack of "smarts" and everything to do with the lack of time and interest. In fact in many cases the 'smart' thing to do is to just sell and walk away, and the decision to keep going is more based on various notions of family 'loyalty' and tradition and responsibility, rather than actual "business smarts".

human_person 4y ago

Have you mentioned that to your distant relatives? They might be more interested in x/2% (or even x/4%) of something, instead of x% of nothing. I guess worse case they would try to help with admin.

simne 4y ago

> But it would only make sense if I owned a larger part of the business Co-owned companies are not easy to run, but when You have more than 10% of shares, You already have hard matter, which You could use as foundations for future grow of Your shares, if other coowners are not smart/experienced enough. And You don't need to make deal with daemon, in most cases You just need to know very well, what You really want in Your life and what You want to pay for it.