Many family businesses take pride in being highly successful due to personal relationships, harmonious operations, and healthy cooperation among family members working together in the business. Without a doubt, a business managed by a family in partnership, understanding, and harmony can generate numerous advantages for both its owners and its customers.
But what happens when internal frictions begin and the business becomes less harmonious? There are quite a few people who argue that it’s not advisable to mix work and family. The reason lies in the fact that jointly managing a family business exposes the partners to numerous and varied disputes and conflicts. In such a situation, when the business conflict also becomes a family conflict, it can lead not only to the loss of the business but also to rifts and severed ties within the family.
In cases of conflict in family businesses, parties can turn to legal proceedings to find a solution. However, the cost that legal proceedings can exact from the family and the relationships among family members can be destructive. Another option for a family embroiled in an internal business conflict is to turn to mediation in a family business. This article will explain the advantages of mediation in family business conflicts at the Nishri Mediators office, which operates with the New Partnership mediation method.
Advantages of Mediation in Family Business Conflicts
The advantages of the mediation process primarily lie in its ability to resolve the dispute through dialogue, improve relationships among family members working together, and of course, avoid the need to go to court. As known, besides the fact that legal proceedings are long, complex, and expensive, it’s impossible to predict how they will end – and there’s a high chance that at least one of the parties will not be satisfied, so the family conflict may deepen and in fact, lead to a disconnect between family members (a disconnect that can also affect future generations). A judge will never know the family, its capabilities, needs, and history better than the family members themselves, so the decision made in a judicial process cannot include critical variables such as emotional aspects and past events for the continuation of normal relationships in the family.
**Unlike the legal process, mediation in a family business conflict is a voluntary process and begins only when both parties agree. This has a great advantage since by agreeing to sit and talk in mediation, they are expressing their readiness to communicate and get closer to the other side.
It is a short and focused process, which allows each of the parties involved in the conflict to express their positions, aiming to reach an agreement that is acceptable to all parties and takes into account the interests and needs of each of them.
Moreover, in the mediation process in a family business, there is an opportunity to reach creative solutions and agreements. Since the whole process is conducted in good spirits and a pleasant atmosphere, if the process is crowned as a success, family members can resolve their conflict and not only continue and maintain their relationships as family members, but in some cases, also maintain their business relationships – if they come to a mutual conclusion that this is the right decision for them.
5 Key Advantages of Mediation in Family Business Conflicts at Nishri Mediators Office
1. Professionalism – In our team of mediators, you will find mediators with years of experience in mediating family business disputes.
2. Availability – We are available for you throughout the process until you reach agreements on the disputed issues.
3. Peace of Mind – Mediation in family business disputes allows you at an early stage of the process to know that you are on the right path for you.
4. Future Relationship System – An agreement reached in mediation in a family business conflict allows for maintaining a proper relationship system between parties involved in the dispute and prevents future conflicts.
5. Warm Approach – In times of crisis, it’s important to feel that someone understands you and genuinely wants to help you resolve the situation in the best possible way. The work approach of our mediators and the extensive experience we have accumulated over the years will allow us to be that person for you.
Questions and Answers on Mediation in Family Business Conflicts
Q: Who is mediation in family business conflicts intended for?
A: Mediation is intended for families running a joint business who have encountered a dispute regarding the management, profit distribution, authority division, and other complex disputes, and prefer to resolve the dispute quietly, creatively, and outside the spotlight and walls of the courtroom.
Q: How much does mediation in a family business conflict cost?
A: The cost of mediation in a family business conflict is calculated per hour of mediation. The cost in our office ranges from 450 to 850 ILS per hour for each party.
Q: Is there an obligation to follow the law during mediation in family business conflicts?
A: The law in family conflicts can serve as a compass or a source of comparison, but there is no obligation to act according to it. The final outcome of the process can and should be as creative and adapted to the family members involved in the conflict as possible.
Q: Is an agreement reached in mediation in a family business conflict binding?
A: Absolutely. An agreement reached in mediation and approved by the parties is binding in every way. If necessary, the agreement can be submitted to the court to give it the effect of a judgment.
Q: How long does it take to reach agreements in mediation in family business conflicts?
A: Mediation in a family business conflict usually lasts a number of hours spread over several days or weeks.
Q: Where does the mediation process in family business conflicts take place?
A: The mediation can take place in any of our offices according to your convenience and the availability of the mediator you prefer.
Q: Who are the mediators at the Nishri Mediators office?
A: Our mediators are senior and experienced mediators who have undergone the best required training and have accumulated extensive experience over the years in mediations in various fields. Our mediators are accompanied by mediator Nadav Nishri, recognized as one of the leading mediators in Israel.