Thursday, May 17th 8:00am - 9:30am
"The Family Business Project"
North Shore Chamber HR & Employer Workshop
Presented by Rick McDonald, US Advisory Group
Click Here to Register or call (978) 774-8565
It is tough enough these days running and growing a profitable business. And if that happens to be a family business, you have a number of different issues beyond the company's bottom line. Many multi-generational family businesses have siblings or children involved. How does that dynamic work in the broad picture? How do you navigate different agendas?
The Three Imperatives:
1. Operating Efficiency
2. Compensation. What is the appropriate salary? (Present value of excess distributions out of the company is the sale that will not happen in the future). Stop it with the toys and start creating wealth funded by, yet outside of, the business.
3. The Exit Strategy.
We are going to focus on the Exit Strategy in this session. Why?
Because for a vast number of family business owners, time is becoming an issue. We need to formulate the end game.
75% of the owners of these companies are Baby Boomers
Less than 1 in 4 have a Succession Plan
Lack of a plan when "something" comes up is typically a Liquidation (leaving the employees out in the cold) or a distressed sale, which typically not only hurts the surviving family members, but also threatens the welfare of the employees.
So, in getting to a good end, let's start at the beginning…
The Exit Strategy.
Who is going to buy you?
If it is a family member or key employee, do they have the money?
When are you selling (or "when do you want" to sell)?
What is the net number you need to end up with to support the lifestyle goal(s) and other capital requirements you desire?
And what does the "Buyer" perceive you are worth?
Rick McDonald is founder and a principal of USAdvisory Group (USAG), a small multi family private wealth management company located in Wakefield and Beverly Ma. Rick is a former mutual fund portfolio manager, and has led the company in it's work with family business owners in their quest to create entity value, and actively led acquisitions and sales transitions of family firms ranging in sales from as low as $5 million to more than $100 million, across numerous industries, to both family members and as well as outsider interests. He is an author, national speaker and quoted authority on money matters involving family business dynamics. Two of his three sons are inside of USAG, while a third is in the private equity business with a large national firm. He resides with his wife in Manchester by the Sea.
May 24th - After Hours Networking Reception
Four Points by Sheraton Wakefield - Beers & BBQ
June 6th - Executive Breakfast: Workforce 2018
"Preparing Today's Workforce for the Jobs of Tomorrow"
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