Is a buy-out a good option for a turbulent family label business?

Rock, My brother and I own a small family business specializing in finishing cut labels. We have custom-engineered equipment, jigs that I’ve built, and systems to speed up production. We have worked with our suppliers to develop inks, formulations, and coatings that don’t cause picking or curling. We can do screen printing, embossing, coatings, and die-cutting, even on small cut labels. I enjoy figuring out how to do challenging projects. My brother handles sales and business growth.

In a perfect world, we’re a good match.

Here’s the problem. My brother is a charming guy in public but a real nightmare in private. The employees who stay with us – well, frankly, I don’t know why they stay with us – are shell-shocked by now. During his rage episodes, production stops. Employees go out and sit in their cars or simply leave for the day. He screams, throws things, and destroys the shop. I know he has some level of self-control because he doesn’t damage customer jobs or – what a surprise! – his own property.

I’ve been putting up with his unpredictable behavior for over 20 years! Now that my kids are out of college, there’s no reason for me to stick around. If my brother has a good spell and is on his best behavior, I get sucked back in. Then the cycle happens all over again.

I just want a peaceful place to work with no drama. I always appreciate your perspective, Rock, and I enjoy your columns. Thanks.

I’m sorry you and your employees have to deal with this situation. I can see it has an impact on productivity and morale. I can’t give you legal advice, so I recommend you engage an attorney to represent and protect you, not the one who handles your family business. You will want an experienced advisor by your side.

Many family businesses deal with anger and inappropriate behavior in the workplace. You need a path forward and expert guidance and support for yourself and your shell-shocked employees. Witnessing workplace rage is not healthy, and people need to feel safe at work.

From your brother’s perspective, it must be terrible to feel so out of control. He may be dealing with personal problems or have medical or mental health issues. Sometimes frustration, fear, trauma, or other triggers are vented through inappropriate anger. If this has been a lifetime of behavior, I assume you are aware of what may be going on with him.

It can feel unfair to be the brother who does not get to act out when you feel frustrated. This can be a factor in the drama you are not aware of. You may think you are being the stoic hero to onlookers when your brother is the emotional one. A family business expert can help you examine your own role and feelings.

If you pursue family business counseling, you must do so right away. It’s not acceptable to run a business in this manner.

Now I must be blunt: If your brother were not a family member, would you ask him to leave?

I suspect you would. You are proud of your business. You and your employees provide a valuable service to your customers. There will be many years of demand for the specialty finishing work you do.

Can you buy your brother’s half of the business?

If you were captain of the ship, you could:

• Hire a salesperson of your choice.
• Structure the new business entity to suit you.
• Develop your own growth plan.
• Bring in an advisor to help you strengthen the business in the areas where you relied on your brother.

If this sounds better than walking away from your successful cut label finishing business, let’s set up a time to talk about the details of your situation and how you might structure an offer.

I recommend you look at my expert guide, Code Red: 12 Seller Mistakes. It will help educate you about your options.

Thank you for sharing your situation with other owners who may be going through this. I wish you a peaceful resolution.