For Money or Love? Financial and Socioemotional Considerations in Family Firm Succession

In mid-2012, Charles Gilman, the founder and sole owner of the custom fixture manufacturer/installation company CustomFittings, was approached by a local competitor, Jack Miller, with an offer to buy his company for $9.5 million. This tangible offer forced Charles to decide what to do with CustomFittings, as he and his wife, Christine Gilman, were approaching retirement age. Although their son, Bill Gilman, was keen on taking over the company, Charles and Christine were depending on the firm to fund their retirement-but Bill did not have enough capital to buy the firm and thus provide them with a suitable retirement sum. While accepting the offer from Jack would put the couple in a comfortable position financially, the move might jeopardize their son's career, their employees' jobs, and the family's legacy and reputation.