Succession Planning – Building Value

September 5, 2008 | Link This | Email this | Comments (2)

While on a recent client visit, I experienced a situation that I had encountered on several occasions in the past . . . an individual showing up late for a meeting. But in this particular case, it was a family member showing up late for a meeting! It happened to be a meeting where several family members took time out of their busy schedules, time away from their children and their respective businesses to attend. You may say, what’s the big deal? Great question! Please allow me to elaborate.

Let’s begin with the bottom line! Whenever you show up late for a meeting, regardless if it is a family meeting or a business meeting comprised of non-family participants, you are instantaneously sending a message that your time is more important and more valuable than all of the other participants that are waiting eagerly for your arrival. This is what I refer to as &ldq...Read More

September 3, 2008 | Link This | Email this | Comments (0)

Have you (or one of your family members) been thrust into a position in your family business because there was a dire need to plug a hole or fill a gap?

Hopefully the answer is no! Short term to fill a gap, fine; but do not get trapped. It is the equivalent of death by a thousand cuts. For those of you who have, unless this is your passion, do yourself and your family a favor and get the hell out. Do not settle or linger in a position that is a dead end or is a position that will not allow you to experience professional and personal fulfillment.

Over the years, I have encountered countless families who have inserted family members into positions with the best of intentions only to find that they are either placing a round peg into a square hole or are insensitive to the fact that the respective family member is not the ideal candidate for the job. In the short ru...Read More

September 1, 2008 | Link This | Email this | Comments (0)

How many times have you found yourself saying one thing and doing something 360 degrees different than you said you would? Let me admit, I am guilty of this from time to time! For example, many times I find myself delinquent in submitting my weekly blogs for review in a timely fashion to our talented, internal, creative marketing department. Have you been in a similar position in your business where you have talked the talk but have not walked the walk? If so, you might feel as I have in that this is yet another good intention that has gone awry.

Approximately five years ago, one of my clients who had been notoriously late to meetings scheduled well in advance had no idea that other members of the group were extremely perturbed with his tardiness to meetings. From his perspective, he was casually late. The other participants did not see it that way! They perceived his ta...Read More

August 8, 2008 | Link This | Email this | Comments (0)

There is no question, we are in one of the most difficult economies we have faced in decades with oil prices through the roof, rising steel prices, housing market collapse, inflation concerns, political uncertainty, and the list goes on. Surely I do not have to elaborate any further as your business is likely feeling the impact. A decline in profitability is almost never a good thing…that is, unless you are looking to transfer equity in your business to a family member. This indeed could be an opportunity of a lifetime!

One of my clients (let’s call him Jim) has been debating transferring equity in his business for approximately three years to two of his children who are active in his business. Jim is facing a significant estate tax bill which was one of the motivators for considering a stock transfer. Up until now, there have been numerous reasons why Jim h...Read More

August 6, 2008 | Link This | Email this | Comments (0)

A few weeks ago, I met a prospective client who happened to be in business with three of his siblings. Two of the family members are in their mid forties and two are in their mid fifties. They have done a fantastic job of giving birth to and developing a successful business over the past twenty years. However, they have reached a point in their business life where they are struggling with what to do next. After spending approximately two hours with this family, it became clear to me that they have been working in opposite directions as of late with each family member doing what he thought was important for the business, not necessarily what is in the long-term best interest of the company. Thus, one of my conclusions which I shared with them is, “you need an alignment.”

Just as your car occasionally needs to be aligned, so does your vision when it comes to plan...Read More