Hearts, Minds, and Margins: The Art of Relationship-Based Business Buying

This instructional case presents Reagan and Jay Smith as they contemplate the acquisition of a grain elevator in Monro, Montana. Their motivations extend beyond pure economics; they seek to protect a family legacy, stimulate local agricultural commerce, and fulfill an entrepreneurial ambition. However, the process is complicated by several factors: the seller’s reluctance to provide full financial transparency, emotionally biased valuations, and trust issues embedded in close-knit community ties. The case can be run in-person or virtually. Running this case in the MOBTS session will demonstrate how to guide students through an ambiguous, cross-disciplinary business situation. We describe how this case enables students to practice developing financial models, evaluate small business viability under uncertain assumptions, and engage in strategic decision-making influenced by interpersonal dynamics.