The key is ones value system. Do you see yourself as a steward to the business, or do you see the business as your possession.
(Contemporary) American culture tends to lean towards the latter while the old world (and particularly Germany) seems to lean towards the former.
While it may be true that the assets could be liquidated via M&A, oftentimes those st the helm genuinely believe that it is their duty to serve the company and its stakeholders and employees rather than use it/them to the owner’s maximum benefit.
If your business is a well automated machine where technology acts as a force multiplier for some level of human input that is approaching 0 over time, then it becomes a possession. Most tech people aspire to have this kind of business. It is easier to do with it whatever you please, including taking it in a risky new direction or even shutting it down completely. The only person you hurt is yourself.
If however your business is driven mostly by raw human labor and more and more families are depending on the jobs you create as you grow, then you are mostly in the stewarding category. You will lie awake at night knowing that many people are counting on you to make the right decisions and to be merciful to them.
(Contemporary) American culture tends to lean towards the latter while the old world (and particularly Germany) seems to lean towards the former.
While it may be true that the assets could be liquidated via M&A, oftentimes those st the helm genuinely believe that it is their duty to serve the company and its stakeholders and employees rather than use it/them to the owner’s maximum benefit.