The chief executive officer (CEO) of a family business is considering options available to owners of the company to monetize their shareholdings. Since the shares in privately-owned companies are illiquid, the family members might have substantial wealth on paper, but they would not have big amounts of cash available. The 2nd generation looking at retiring would like to recognize some of the value from the business they have worked to build and, at the same time, coordinate that preparation with the top interest and intent of the other, younger investors.
Wunnerful, Wunnerful Ownership at the Welk Hospitality Group Case Solution
The owners must consider not only the choices accessible to monetize illiquid shareholdings for investors in private businesses, but also how to value illiquid shares on the basis of the CEO's recommendations. The challenge nevertheless, is reconciling the conflicting business ramifications involved in the process without endangering the company's strategic vision and also the interests of family members.
PUBLICATION DATE: December 02, 2015 PRODUCT #: W15564-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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