Corporate Finance & Planning Insights for Multi-Generational Family Businesses
The recent turmoil engulfing the Rogers family, controlling shareholders of the $20 billion Canadian wireless communications and media conglomerate Rogers Communication, piqued our interest. What can public family strife affecting the Rogers family teach us? Well, quite a bit. In this post, we summarize the family drama and provide three strategies to keep in mind to stave off harsh family infighting that can, ultimately, bleed over into your company’s ability to operate effectively.
Despite our best efforts, having four kids in the house means that we are a net candy importer over the Halloween weekend. Staring at the piles of candy in our house this morning brought to mind several recent conversations we’ve had with clients and prospects. The topic of those conversations was “lazy” capital. In this post we discuss where lazy capital comes from, what its consequences are, and how to get rid of it.
The most common valuation-related family business disputes we see in our practice relate to measuring value for buy-sell agreements. Far too often, buy-sell agreements include valuation provisions that appear designed to promote strife, incur needless expense, and increase the likelihood of intra-family litigation. The ubiquity of valuation provisions in buy-sell agreements that do not work is striking.
In this post, we explain the top five causes of valuation process failure, and determine that there is a better way in which a valuation process for a buy-sell agreement can lead to reasonable resolutions.
My family and I have been out at the Broadmoor in Colorado Springs for a work conference. Since we were going to a nice resort and conference center, we decided to parlay the weekend into a family business meeting. The meaning of the family business impacts the three key legs of the family business stool: dividend policy, capital investment, and financing decisions. In this post, we detail how we thought about each of the three legs.
Numerous changes lurk in the current reconciliation bill snaking its way through Congress and it could have major ramifications to the estate plans you worked up just a few years ago.
In this post we briefly touch on planning vehicles and structures as well as valuation tools currently being debated in the reconciliation bill and why they are important to many family business owners and advisors.
If you are in the fortunate position to be the owner of a profitable family business you might consider hiring an expert to help manage your wealth. If so, you should be familiar with two primary business models available to assist in wealth management: traditional wealth management firms and family offices.
In this post, we discuss some key differences in deciding which financial solution is best for an ultra-high net worth individual or family.
The U.S. House Ways and Means markup of the $3.5 trillion reconciliation bill is here and we’ve discovered surprises both big and small.
In this post, we summarize some of the key proposals that you and your family board need to keep an especially close eye on.
For family businesses that have never had an external valuation, there is likely to be some confusion as to what the process involves. In this post, we give a brief walk-through of the valuation process, from engagement through to issuance of the final report.
Why should family business leaders care about the value of their business? If the family is not contemplating a sale of the business, why does valuation matter?
Clearly, valuation matters a lot when it is time to sell. But valuation matters at other times as well. In this post, we describe four common valuation applications in family business.
In this week’s Family Business Director, Tim Lee, ASA, Managing Director of Corporate Valuation and John T. (Tripp) Crews, III, Senior Financial Analyst, discuss expectations around the timeline for your business transition or sale and summarize key points to keep in mind when driving towards an internal or external sale.
