When the Worst Happens

A Teaching Case About an Owner-Manager's Sudden Exit

Research output: Other contributionEducation

Abstract

This is a Danish version. Owner-manager Jens Justesen suddenly steps down as CEO and chairman of the board of Ragus A/S after the doctor informs him that he is incurably ill with cancer. Twenty-two years earlier, he had assumed control of the manufacturing company from his father and his father’s good friend, who were the original founders. The company was divided equally among the families of the founders through each family’s holding company. Both families are represented on the board, but only Jens was involved in the company’s operation. Before Jens steps down, he appoints the company’s accountant as the new chairman of the board, a division director from Ragus as the new CEO and offers his youngest son a position as division director. His son agrees, but is young and inexperienced when Jens steps down. Furthermore, cooperation between the two families is a bit tense. Jens dies a few months later. The question is, how should the heirs best secure the existence of the company in the long-term?
Original languageDanish
Publication date19 Jun 2017
Place of PublicationFrederiksberg
PublisherCopenhagen Business School, CBS
Number of pages6
Publication statusPublished - 19 Jun 2017

Bibliographical note

Case - Reference no. DK317-0228-1

Keywords

  • Exit planning
  • Owner-management
  • Family business
  • Ownership transfer

Cite this

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title = "When the Worst Happens: A Teaching Case About an Owner-Manager's Sudden Exit",
abstract = "This is a Danish version. Owner-manager Jens Justesen suddenly steps down as CEO and chairman of the board of Ragus A/S after the doctor informs him that he is incurably ill with cancer. Twenty-two years earlier, he had assumed control of the manufacturing company from his father and his father’s good friend, who were the original founders. The company was divided equally among the families of the founders through each family’s holding company. Both families are represented on the board, but only Jens was involved in the company’s operation. Before Jens steps down, he appoints the company’s accountant as the new chairman of the board, a division director from Ragus as the new CEO and offers his youngest son a position as division director. His son agrees, but is young and inexperienced when Jens steps down. Furthermore, cooperation between the two families is a bit tense. Jens dies a few months later. The question is, how should the heirs best secure the existence of the company in the long-term?",
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When the Worst Happens : A Teaching Case About an Owner-Manager's Sudden Exit. / Nellemann, Camilla; Korsager, Ellen Mølgaard.

6 p. Frederiksberg : Copenhagen Business School, CBS. 2017, Case.

Research output: Other contributionEducation

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AB - This is a Danish version. Owner-manager Jens Justesen suddenly steps down as CEO and chairman of the board of Ragus A/S after the doctor informs him that he is incurably ill with cancer. Twenty-two years earlier, he had assumed control of the manufacturing company from his father and his father’s good friend, who were the original founders. The company was divided equally among the families of the founders through each family’s holding company. Both families are represented on the board, but only Jens was involved in the company’s operation. Before Jens steps down, he appoints the company’s accountant as the new chairman of the board, a division director from Ragus as the new CEO and offers his youngest son a position as division director. His son agrees, but is young and inexperienced when Jens steps down. Furthermore, cooperation between the two families is a bit tense. Jens dies a few months later. The question is, how should the heirs best secure the existence of the company in the long-term?

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KW - Family business

KW - Ownership transfer

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