Dividing the Family Business: Lessons From the Hiranandani Group

Abstract

Niranjan Hiranandani, one of India’s most prominent property developers, experienced impressive business success as well as awkward family drama, prompting him to gradually split up the family business to allow family members to go their own ways. Avoiding and managing family conflict is crucial to the survival of family firms, but when, why, and how family leaders should divide the family firm or let go of family members is still unexplored territory. What did Niranjan Hiranandani do well when trying to stem the conflict in his family, and where could he have done better? This case provides lessons for leaders who want to divide the family business by exploring three different separation mechanisms.