After the merger took place, is the point that there was a change in how everyone was working with each other (through having less conflict among different parties). Over the course of time, this resulted in the firm receiving favorable distinctions from these activities. These elements are showing, how succession issues can have a major impact upon the assets of family businesses. This is from divisions surrounding direction and who will control the firm in the future. (Carlock, n.d.) Conclusion

Clearly, one of the biggest challenges facing most family businesses is strategic direction and succession. This is because the different family members want to be able to have control of select assets (despite a will that is in place). When this happens the odds increase that there will be more litigation surrounding these issues. In the future, this means that the business could suffer from these challenges. It is at this point, that a firm can lose its dominance and influence from infighting among family members. (Carlock, n.d.)

In the case of the McNealy's,...

The only difference is that there was a settlement and then a court ordered liquidation of the firm (which resulted into two different entities ran by each brother). After several years of using this strategy, is when Don and Harry Jr. realized that these issues hurt the company over the long-term. (Carlock, n.d.)
This is the point that both entities were combined into one. After this occurred, there was a change in how everyone was interacting with each other. As they realized, that the succession and direction issues did not benefit anybody. This is when the firm began to take the ideas of different family members and combine them into a single strategy. Over the course of time, this improved strategic decision making abilities (which resulted in the company receiving the Minnesota Family Business of the Year Award from the University of St. Thomas). (Carlock, n.d.)

References

Carlock, R. (n.d.). Entrepreneurship, Conflict, Transition and Connection.