The Thammawattana family fortune began with a simple food stand in Bangkok. Eventually it turned into a giant marketplace. What happened then is an example of what follows when the direction and leadership of a company are unclear. There were shootings, abductions, suicides and longtime court battles among the family members. Relationships in the family were destroyed, there were rivalries and lawsuits with severe financial and reputational damage. The business school INSEAD's website says that a long-term business plan and clear, commonly accepted succession plans are needed. These two things can help any family firm to avoid disintegration. Let’s see how things got complicated.
Family enterprise and family murders
The business gradually expanded and later included a large number of small business owners who paid regular rent. After about 16 years, there was an attack by gunmen. Family conflict over the management was the cause.
Succession trap tears the family apart
There were more attacks on other members of the family, and after a few years there was no obvious successor. The former head of the business had made a series of wills. More murders, abductions and car accidents followed. Some were accused of stealing from the family company, some chose to leave it because they were sick of all the hate and fights.
Succession lessons for all family firms
The case of the Thammawattana family is rather brutal. It bears a lesson for all family businesses. When it comes the company’s future, leaders should not only write a will. There is a need for a long-term succession plan. It must be communicated to all family members while the leader is still alive. The acceptance of the plan by all family members is necessary. Otherwise it can be dangerous for the business, and to the family itself.
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