Impact Study - Real Estate Services Company


Organization Details:
Ownership: Family business
Industry Sector: Real Estate Services

Entry Situation:
Co-founder interpersonal relationship problems have built an atmosphere of hostility, no trust and a lack of decision-making capacity. Business at risk of failing.

Dollar Impact Summary
- Benefit to Cost Ratio: (14:1)
- Estimated Cost of Conflict up to Entry Point: $138,870
- Estimated ongoing conflict costs per month pre-engagement: $14,100
- Total Cost of Resologics Services: $9,500 total
- More impact info: see below

Organizational Goals:

  • Open dialogue between the founders so critical business decisions can be made efficiently
  • Make a decision about continuing to work together as co-owners
  • Set in place a long-term arrangement around finances
  • Bolster outside of company critical relationships in order to create buy-in to any decisions made
  • Long-term reconciliation of issues and relationships
  • Reduce legal costs associated with conflict

Resologics Role(s):

  • Mediation
  • Conflict Coaching with founders and other team members
  • Recommendations for additional external services

Here's What Happened:

  1. Mediation and coaching uncovered core issues, put in place short-term decision-making rules, and put to rest many interpersonal issues. These meetings also set in motion long-term reconciliation between the parties.
  2. Mediation and coaching led to one founder selling the business to the other.
  3. Mediation led to a full long-term agreement on how all aspects of the business sale would take place.
  4. Outside recommended services led to a contract signing and the acquisition.

Primary Conflict System at Play:
Equity split decisions made at the outset of the business led to challenging decision making issues throughout the life of the company.

Short-Term Impact:

  • The organization is now thriving
  • Decision making capacity has been enhanced
  • Revenue and profits are at an all time high
  • Management has in place documented methods for continued improvement
  • The family relationships are healing and normalizing

Expected Long-term Impact:

  • Higher performing team
  • Expansion of the business.
  • Continuing gains in revenue and profitability
  • Organizational readiness to be acquired for maximum price