Wunnerful, Wunnerful: Ownership at the Welk Hospitality Group

內容大綱
The chief executive officer (CEO) of a family business is considering options available to owners of the business to monetize their shareholdings. Since the shares in privately-owned firms are illiquid, the family members may have significant wealth on paper, but they do not have large amounts of cash available. The second generation looking at retiring would like to realize some of the value from the firm they have worked to build and, at the same time, coordinate that planning with the best interest and intent of the other, younger shareholders. The owners need to consider not only the alternatives available to monetize illiquid shareholdings for investors in private firms, but also how to value illiquid shares based on the CEO’s recommendations. The challenge facing the CEO, however, is reconciling the conflicting business ramifications involved in the process without compromising the company’s strategic vision and the interests of family members.
學習目標
The case is suitable for use in undergraduate and graduate courses on entrepreneurship, family business, valuation of private firms, corporate governance and dealing with illiquid assets.<ul><li>To analyze the alternatives available to monetize illiquid shareholdings in a family business.</li><li>To illustrate how to value illiquid shares for monetizing private shareholdings.</li><li>To discuss how to incorporate the non-financial, emotion-based criteria into the family firm’s decision-making process.</li><ul>
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