John White, president and CEO of a well-known company in the office equipment industry, was wondering if he should acquire a small electronics component business. Since the company’s products would be a valuable addition to his office equipment line, White had been quite eager to pursue the matter. In considering this possibility, White kept going over in his mind the kind of arrangements he should make with the electronics company’s founder and owner, Lee Thompson. During their discussions of the buyout, Thompson had indicated that he was prepared to stay on after selling his company. Although White recognized Thompson’s contribution to making the company a big success, he wondered how a continuing association would work out. Would Thompson fit in with the parent company? How would Thompson deal with being a subordinate? Would Thompson, used to having things his way, follow directions and accept White as a boss?
A version of this article appeared in the November 1985 issue of Harvard Business Review.