This case introduces the genre of “wicked problems” in strategy. InspirOn Engineering is a third-generation textile machinery family business. The patriarch, in his 72nd year, has announced his retirement without a succession plan. Chinese acquisitions in Germany have transformed the competitive landscape into two business divisions. The leadership has to decide between (1) scaling up the capacity through a strategic alliance or a merger, (2) hiving off a separate cost-and-profit centre destined to be positioned as an acquisition target or for closure and (3) outright sale of a part of the business including proprietary intellectual property rights (IPRs).