This is a two-part series on the topic of dividends. We begin with an initial discussion of what dividends are, and then in the next post, we will talk about the “7 Critical Things to Know About Your Company’s Dividend Policy.”
After being involved with many business transactions over many years, I’ve realized that there are at least seven ways that potential investors look at a business. Not every investor will look from every perspective. There are, of course, financial buyers and strategic buyers, and their perspectives will likely not be the same and not all perspectives will be relevant for every company. However, these various perspectives are worth discussing for your consideration.
There are two kinds of value for your business: 1) Value to you as an owner, and 2) Transferable value. These concepts are important to understand as we talk about successful ownership and management transitions.
A number of One Percent Solution Activities were identified in the earlier post, including wealth manager compensation, annual appraisals for monitoring performance, buy-sell agreement pricing, life insurance funding, estate planning, and others. It is now time identify a number of One Percent Solution Strategies for managing private wealth.
PwC has conducted a family business survey on a number of occasions in recent years. I recently read the PwC Family Business Survey 2012/2013, which deals with the top challenges faced by family businesses at the present time. Those challenges include dealing with the general economic situation, price competition (at home and abroad), the need […]
When it comes to succession planning, are you and your company a Microsoft, with no plan at all, or are you a Berkshire Hathaway, with an announced plan in place?
Two partners finally created a buy-sell agreement after more than twenty years in business. At the unexpected death of one of them, the life insurance worked as a funding vehicle to purchase his stock. However, he had failed to communicate with his wife about the agreement and that was bothersome to her for a long time. The death of one partner then creates new issues for the other.
Over the course of my career, I recall two businesses where the owners were aging and where needed ownership and management transitions had been delayed or ignored. These companies were not clients, and I hold no confidential information about them. My discussion today relates to obvious observations based on reviews of their websites and informal […]
Many of the companies I deal with have baby boomer senior managers who own substantial portions of their companies. Every one of these companies will experience management transitions over the next one, two, five or ten years or so. Isn’t it better to plan ahead for these critical transitions for the good of your fellow owners, their families, your employees, your customers and on?
Don’t be caught like Mr. Balmer and Microsoft’s board, in a trap with no apparent solution.
I can reflect and remember that we helped this client and friend accomplish some things that are far better being done now, at his death, than not. That is personally satisfying.
