50 Hurdles: Business Transition Simplified

Table of Contents

  • About the Authors
  • Contributors and Collaborators
  • Acknowledgments
  • Foreword
  • Chapter 1 Introduction
    • What’s Different about This Book?
    • Transitioning Family Business Ownership
    • Think of This Book as a Road Map
    • The Growing Importance of Addressing Family Business Transition NOW
    • Overlying Issues
    • Important Takeaways from This Chapter
  • Chapter 2 Overview of Family Business Transition
    • Succession versus Transition
    • Family Business Transition Definitions
    • Revisiting the Three-Circle Family Business Model
    • The Costs of Generational Business Transition
    • Overriding Family Business Transition Theses
    • Generational Business Transition: Outcomes, Ownership and Management
    • Darwin, Draco and Family Business Transition
    • Business Founders and Family Members
    • Characteristics of Family-Owned Businesses
    • Lineal Descendancy
    • Family Councils
    • Family Business Transition Meetings
    • Annual Family Retreats
    • Findings from Interaction with Family Business Owners
    • Important Takeaways from This Chapter
  • Chapter 3 External Expertise
    • Family Offices
    • Retired Executives and Business Owners
    • Advisory Boards
    • Boards of Directors
    • Professionals
    • Conflicted Professionals
    • Important Takeaways from This Chapter
  • Chapter 4 Generational Business Transition:
    • The First Fundamental
    • Generational Business Transition: The First Fundamental
    • Assessing Long-Term Business Viability
    • Important Takeaways from This Chapter
  • Chapter 5 Business Valuation Primer
    • Business Value: The Ultimate Measure of Business Success
    • The Importance of Regular Business Valuation Advice
    • Business Valuation Fees and the Value Added
    • Business Value Definitions
    • Business Valuation Principles, Fundamentals and Concepts
    • After-Tax Discretionary Cash Flow
    • More on Shareholdings
    • Important Takeaways from This Chapter
  • Chapter 6 The Difference Between Standalone Value and
    • Open-Market Price
    • En Bloc Standalone Value
    • En Bloc Open-Market Price
    • Potential Minority Shareholder Discounts in Generational
    • Business Transition
    • What Your Transition Professionals May Not
    • Be Telling You
    • Understanding Strategic Purchaser Synergies
    • Will Strategic Purchasers Pay for Synergies?
    • Identifying Strategic Purchasers
    • Quantifying Purchaser Synergies
    • You Know Your Business Best
    • Important Takeaways from This Chapter
  • Chapter 7 Business Transition Hurdles and Barriers
    • Is Successful Generational Business Transition Possible?
    • Hurdles and Barriers to Generational Business Transition
    • Hurdles – or Barriers?
    • Create Your Best Chance for Generational
    • Business Transition Success
    • Is Generational Business Transition Right for Your Family?
    • So, What Do You Need to Do?
    • Important Takeaways from This Chapter
  • Chapter 8 Fundamental Business Hurdles
    • Hurdle #1: Poor Business Viability
    • Hurdle #2: Balance Sheet Weakness
    • Hurdle #3: Lack of Business Growth and Value
    • Hurdle #4: Insufficient Business Size
    • Hurdle #5: Lack of Business Diversification
    • Important Takeaways from This Chapter
  • Chapter 9 High-Level Hurdles: Part 1
    • Hurdle #6: Protecting Your Nest Egg
    • Hurdle #7: Understanding that External Equity
    • Capital Changes the Game
    • Hurdle #8: Differentiating Between Estate and
    • Transition Planning
    • Hurdle #9: Distinguishing Between Drivers and Passengers
    • Hurdle #10: Ensuring Each Generation Has a Family Leader
    • Important Takeaways from This Chapter
  • Chapter 10 High-Level Hurdles: Part 2
    • Hurdle #11: Dealing with Minority Shareholdings
    • Hurdle #12: A Non-Existent or Inadequate
    • Shareholder Agreement
    • Hurdle #13: Lack of Full Commitment
    • Hurdle #14: The Need for a Transition Administrator
    • Hurdle #15: Single- or Multi-Generational Planning?
    • Hurdle #16: Announcing Generational Business Transition
    • Important Takeaways from This Chapter
  • Chapter 11 Family Business Hurdles
    • Hurdle #17: Ensuring the Family Business Comes First
    • Hurdle #18: Understanding Business Valuation
    • Hurdle #19: Unequal Economic Advantage
    • Hurdle #20: Failure to Prepare Your Business for Sale
    • Hurdle #21: The Ongoing “Hold or Sell” Decision
    • Hurdle #22: Identifying Strategic Purchasers
    • Important Takeaways from This Chapter
  • Chapter 12 Family Hurdles
    • Hurdle #23: Misaligned Trust, Value Systems and Ideologies
    • Hurdle #24: Lack of a Transition-Aligned Corporate Culture
    • Hurdle #25: Entitled Family Members
    • Hurdle #26: Too Much Emotion, Not Enough Logic
    • Hurdle #27: Dissimilar Risk and Liquidity Profiles
    • Hurdle #28: Family Owner Buyouts, or “Pruning” Important Takeaways from This Chapter
  • Chapter 13 Ownership and Management Hurdles
    • Hurdle #29: Poor Ownership/Management Separation
    • Hurdle #30: Ownership Transition
    • Hurdle #31: Management Transition
    • Important Takeaways from This Chapter
  • Chapter 14 High-Level Corporate Governance Hurdles
    • Hurdle #32: Too Much Compromise, Not Enough Collaboration
    • Hurdle #33: Poor Corporate Governance
    • Hurdle #34: Lack of an Advisory Board
    • Hurdle #35: Finding Arm’s Length Directors
    • Hurdle #36: Lack of Non-Family Executives
    • Hurdle #37: Keeping Confidential Information Confidential
    • Important Takeaways from This Chapter
  • Chapter 15 Corporate Governance: Business Valuation, Business Planning and Liquidity Hurdles
    • Hurdle #38: Failure to Determine Business Value
    • Hurdle #39: Lack of Business Strategizing and Planning
    • Hurdle #40: Inability to Fund Share Transactions and Life Insurance
    • Hurdle #41: Inability to Pay Dividends
    • Hurdle #42: Lack of a Share Buyback Program
    • Important Takeaways from This Chapter
  • Chapter 16 Corporate Governance: Employment Policy Hurdles
    • Hurdle #43: Lack of Written Employment Policies
    • Hurdle #44: Ensuring Family Member Managers Are Equipped to Manage
    • Hurdle #45: Lack of Education and Experience Rules
    • Hurdle #46: Working for a Competitor
    • Important Takeaways from This Chapter
  • Chapter 17 Shareholder Disputes and Related Legal Hurdles
    • Overview: Shareholder legal rights and remedies
    • Hurdle #47: Resolving Disputes
    • Hurdle #48: Understanding Dissent Remedies
    • Hurdle #49: Understanding Oppression Remedies
    • Hurdle #50: Navigating Family (Matrimonial) Law
    • Important Takeaways from This Chapter
  • Chapter 18 Shareholder Agreements
    • Business Valuation Disputes among Shareholders
    • Types of Shareholder Agreements
    • Shareholder Agreement Provisions
    • Valuation Communication, Disclosure and Confirmation
    • Annual Business Valuation Timetable
    • Annual Business Valuation Processes
    • Best Practices
    • How an Independent Business Valuation Expert Allocates En Bloc Value among Debt and Share Classes
    • Important Takeaways from This Chapter
  • Chapter 19 Where Do You Go from Here?
    • Principal Overview Messages
    • Think for Yourself
    • Organize a Meeting with Your Professionals
    • Other Things to Do Now
  • Glossary
  • Public Speaking
  • Index
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