Resolving a dispute over shares in a family company
A conflict between siblings blocked company operations for 6 months. We led to a settlement in 3 negotiation sessions.
A dispute between two brothers over power in a manufacturing plant near Częstochowa had lasted since the beginning of the year. The company stopped accepting orders, and machines stood idle for 6 months. We entered the game to save the business from a bailiff's auction and the total breakdown of the family.
The challenge
Since February 2024, the board had not made any decision due to a quarrel over 47% of shares. The conflict blocked the signing of a lease for a new edgebander for 82,400 PLN, which made it impossible to fulfill an order for a contractor from Germany. Suppliers, sensing trouble, shortened payment terms to 3 business days.
The situation was critical because 4 experienced carpenters submitted resignations in the same week of July. The bank threatened to terminate the credit line if the legal situation of the company was not clarified by the end of August. The siblings communicated exclusively through lawyers, which generated costs of around 12,000 PLN per month without any effect.
Our approach
Marcin Giedroyć took over the conduct of talks, imposing the rule: we talk about facts, not about childhood emotions. First, we met with each side separately to learn the real financial expectations hidden under the layer of resentment. We checked the technical condition of 212 machines and ordered a valuation from an expert both sides trusted.
We organized 3 meetings in a neutral place, away from the company's headquarters. We eliminated lawyers from the room, who until then had been fueling the conflict. We focused on the Excel sheet and specific buyout amounts. We acted in silence, without involving the rest of the family, which allowed the parties to save face.
The solution
We prepared a 14-page asset division document that precisely determined who takes what. One brother took over the main production hall and the brand, and the other received the sales showroom and 3 delivery cars as a separate business entity. We established a cash repayment schedule spread over 12 equal installments, which did not overly burden the company's liquidity.
In the contract, we included a hard non-compete clause for 3 years within a 40-kilometer radius of Częstochowa. Each side received a clear exit plan that allowed for continued business operation, but without jointly deciding on every nail. We formalized the whole thing at a notary within 2 hours.
Results
The company resumed full production 4 days after signing the documents. Employees withdrew their resignations, and the bank extended financing for the next 24 months.
Timeline
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August 2, 2024Accounting analysis of the company and verification of actual operational losses.
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August 7, 2024First negotiation session - determining the list of disputed assets.
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August 14, 2024Presentation of independent expert's valuation and acceptance of buyout amounts.
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August 20, 2024Final meeting and signing of the share separation protocol.
"We thought only a court could save us, but a case there would have rotted for years. Agora Giedroyć forced us to talk about money instead of grievances. This saved the plant from closing last month."