Goodwin Sporting Goods
What are the key issues for Jim Jr. and Pam?
Peter’s ability is questionable, but he is still interested in growing the business. Peter wants to own the business and Fred is looking to get the right amount of his share Business sustainability is the issue; the retail business is not doing so well. Lack of family planning is an issue. The family appears to be a bit spoilt and the expenses on the business are quite heavy. Are there things they could have done to avoid their current situation? What should they have done? They should have gone about making a estate plan, retirement plan, or a succession plan. No plans for ownership or management in place, which is a big issue. This creates conflict in the case of retirement or a family member passing away. Make sure of peter’s ability; also verify his plans for growing the business. Who should they seek out for advice?
It is clear that the family needs help. They have not done anything of this sort before so it is a very unfamiliar situation for the family. Since Jim Senior died without a will and he only had one child it was a simple succession this situation is much more complicated because all the kids want a share. Jim JR is skeptical about peters growth plans because it seems as if they are in a cash shortage because of the various constraints. Jim Jr needs his retirement money, peter needs money to grow the company, Fred wants his even share, and Mary wants to live a lavish lifestyle. Peter should present a plan to Jim Jr about his
They should hire a board of advisors who can assist them with making this decision. At the moment it is very difficult to say who but someone who will analyze their current situation and look to provide solutions. They should also look into getting an attorney or management consultant to allow them to understand the feasibility of the growth plans. They should also
Recommendation to keep the business. Peter should be made to buy the business if...
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