The price of 'protecting' your family - failing to share information with spouse about family business - Family Business Case Study - Column

Nation's Business, Sept, 1995 by Merv Singer, Harrison W. Hine

Helen Peterson, 60, feels like a stranger in her husband's office at Peterson Plastics Corp., where Peter spent most of his waking hours. She can't believe how far removed she has become from a place that has had such a dramatic impact on her life.

Today, the building is quiet. Operations temporarily ceased two weeks ago when Peter died of an aneurysm. Bittersweet memories come flooding back to Helen as she gathers the photographs on his desk--memories of their son, Edward, a senior in college, who was slated to be Peter's successor but is now denied the chance to learn from his father; memories of the many sides of Peter, who was the consummate entrepreneur, quietly confident and never doubting his success or the success of the company but who also could be moody and demanding; memories of the private Peter, who kept the details of the $9 million business to himself, his accountant, and Albert, his plant foreman of 15 years. Peter was always proud of the fact that he "protected" Helen and Edward from the business.

Gentle persuasion on the part of Albert and Peter's accountant has brought Helen here to meet with them. "We need to take steps to ensure the continuation of the business," Albert told her. "And we need to make sure the employees are taken care of."

Helen never wanted to be part of Peter's business and preferred instead to be challenged as a full-time volunteer. Now she realizes she was part of a family business all along. "Peter's death has not only created a personal and financial crisis for Edward and me," she says to herself, "but it has also threatened the survival of the company." Then she adds, "What do I do now?"