Corporate Finance & Planning Insights for Multi-Generational Family Businesses
Selling a family business is both emotional and strategic—much like auctioning a rare treasure. Inspired by Phyllis Kao’s insights at a recent event with Diversified Trust and Sotheby’s, this piece applies four auction principles—provenance, presentation, timing, and the auctioneer—to the sale process. By telling your business’s story, presenting it effectively, and acting at the right market moment with trusted advisors, families can maximize value while honoring their legacy.
If the income statement is a movie that records how your family business performed during a particular period, the balance sheet is a snapshot that records what your family business looked like at a particular date. The balance sheet answers two core questions: “What are the assets our family business owns?” and “How has our family business paid for those assets?”
We’ll flesh out the first question in this week’s post, and turn our attention to the second question in a subsequent post.
It can be all too easy for family business directors to focus on maximizing performance in the current year for the company. However, it is equally important for directors to not ignore less urgent matters that can undergird the long-term health of the company and the family. In this post, we put together a to-do list that includes important tasks for family business directors to complete whether planning for a one-time share redemption or establishing a family shareholder liquidity program.
Clear communication is essential in family business governance, yet shared definitions are often overlooked. That’s why the UHNW Institute’s new Wealthesaurus caught our attention. This online glossary brings clarity to the complex vocabulary of family wealth and enterprise conversations. This resource also provides standardized definitions of common and specialized family wealth advising industry terms. For directors, it’s a valuable reference that supports informed decision-making and effective dialogue across generations.
In Part II of our buy-sell agreement series, we dive into three real-world scenarios where independent appraisers play a critical role in resolving disputes, facilitating fair buyouts, and mitigating litigation risks for family-owned businesses. From valuation deadlocks to triggering events and shareholder conflicts, see how independent valuations can protect both your company’s legacy and shareholder relationships.
Third-party business valuations provide an unbiased, data-driven assessment of a company’s worth, helping owners and directors make informed financial and strategic decisions. By combining structured methodologies with expert judgment, independent appraisals deliver the objectivity needed for transactions, tax planning, disputes, and other critical business events. In this post, we explore why third-party valuations matter and what to expect from the appraisal process.
As directors of private family businesses, you’re no strangers to the delicate balance of maintaining harmony among shareholders while safeguarding the company’s long-term stability. In this week’s post, we dive into a related but often overlooked tool: buy-sell agreements. These agreements act as a safety net, ensuring smooth transitions when life throws curveballs, such as a shareholder’s departure, death, or divorce.
A few weeks ago we released our newest booklet, “Dividend Policy in 30 Minutes.” Whether you read the digital copy, requested a physical booklet, or haven’t gotten a chance to look at it yet, in this short video Travis Harms explains how to go about the decision-making process regarding distribution and why considering various shareholder characteristics and business attributes matters. Travis highlights how the balance between shareholder certainty and board discretion can foster a better understanding of maintaining the sustainability of the business and help promote positive shareholder engagement.
U.S. companies are on pace to buy back over $1.1 trillion of their own stock in 2025 — an all-time high. For public companies, the logic is straightforward: reducing the number of shares outstanding can boost earnings per share and, presumably, the company’s stock price. Family businesses are much less likely to use share repurchases in the same way. In this week’s post, we cover how family businesses are more likely to use share redemptions as motivated by shareholder concerns: liquidity needs, diversification preferences, or a desire to no longer be in business with the rest of the family.
We are excited to offer our readers a physical version of our piece, “Dividend Policy in 30 Minutes: A Guide for Family Business Directors and Shareholders.” The purpose of this booklet is to help family business directors formulate and communicate a dividend policy that contributes to family shareholder wealth and satisfaction. We hope this provides a helpful resource for you and your fellow directors and shareholders.
