3 Pages Posted: 5 Apr 2010
This case could be used in courses about entrepreneurship and managing small businesses. The founder and patriarch of a family business is confronted by his children regarding succession, equitable distribution of money from the business to nonworking family members, and nepotism. The transition from first- to second- and third-generation involvement creates major challenges to family harmony and the business beyond the life of the founding generation. The B case (ENT-0124) examines these issues further.
September 24, 2009
LG Investments, LLC:
A Family Business in Generational Transition (A)
LG Investments, LLC, was a Colorado family business created in 1947 by Tom Borne, a World War II veteran and hero. After the war, Tom spent one year in Walter Reed Hospital in Bethesda, Maryland, recovering from multiple wounds he had suffered in combat, for which he was awarded the Silver Star, the Distinguished Service Cross, and three Purple Hearts.
After his release, he returned to his native state to pursue a college degree at the University of Colorado in Boulder. While in college he started buying small duplexes and renting them out to fellow students. After graduating from college, he decided to stay in Boulder and make a living in real estate.
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Keywords: Family succession, succession processes, family business, intragenerational conflicts, nepotism
Suggested Citation: Suggested Citation
Hess, Edward, Lg Investments, Llc: A Family Business in Generational Transition (a). Darden Case No. UVA-ENT-0123. Available at SSRN: https://ssrn.com/abstract=1583312
This is a Darden A Case paper. Darden A Case charges $6.25 .
File name: UVA-ENT-0123.
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