When the Worst Happens: A Teaching Case About an Owner-Manager's Sudden Exit

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?