We have shared the statistic before—only about 30% of family businesses transition to the second generation.  In the event of divorce, the succession rate is even smaller, and only 10% of spouses continue to operate the family business together after divorcing.

While most couples prefer to avoid having the difficult conversation about “what if” we were to ever divorce, the wisest approach for financial well-being and the continuation of your business is to plan a comprehensive strategy upfront.

Our guest on Thursday, June 10th is Tamar Oberman Faulhaber, Esq with Vernis & Bowling of Atlanta, LLC, who will provide a comprehensive view of this topic.  You can plan on coming away from this interview with a good understanding of Georgia law and of what can happen to you and your business when you are not prepared for the break-up of a marriage.  As important, you will come away armed with knowledge and with a sound strategy on how to avoid the pitfalls.

Our guest:

Tamar Oberman Faulhaber, Esq.

Tamar Oberman Faulhaber was born and raised in Oak Park, California. She graduated Magna Cum Laude with Honors in Philosophy from Lafayette College in Easton, Pennsylvania in 1990, where she was also a Marquis Scholar. She earned her Juris Doctorate from UCLA Law School in 1993, where she served as editor of UCLA Law Review and was a recipient of a Child Abuse Fellowship. 

Tamar clerked for the Honorable Alford J. Dempsey, Jr., in the Fulton County Superior Court for approximately five years. She served on the Rules Committee to establish and maintain the Fulton County Family Division which served as an example as a successful model of a Family Court to other counties in the State. Tamar also served on the Forms Committee of the Fulton County Family Law Information Center to assist citizens of the State to represent themselves in domestic matters.

Tamar volunteered with the Family Law Center for the San Fernando Valley in California and with Victim/Witness division of the DeKalb County Solicitor’s Office in Georgia, assisting victims of domestic violence in family law related matters.

Tamar is a trained Guardian ad Litem and Domestic Mediator, and over the past fifteen years, she handled all types of Family Law matters from Paternity and Legitimation actions, Juvenile Court matters, Domestic Violence cases, Divorces, Custody cases, Child Support matters, International Custody disputes, Contempts, Appeals, and Jury Trials.

In addition to the practice of Domestic Relations Litigation, Tamar also taught Domestic Relations Law as an adjunct professor at John Marshall Law School in Atlanta.

Tamar is admitted to practice law in California, Arizona, and Georgia.

Tamar Oberman Faulhaber, Esq., Vernis & Bowling of Atlanta, LLC, 7100 Peachtree Dunwoody Road, Suite 300, Atlanta, Georgia 30328, Phone: (404) 846-2001, Fax: (404) 846-2002, Email: TFaulhaber@Georgia-Law.com, Website: www.Georgia-Law.com

Sunset Family Business Radio

Recap: Kaufman Realty Group and Vistage-A Successful Partnership for Over a Decade

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On June 3, 2010, Pat Romboletti and Meredith Moore hosted Larry Hart, who serves as a Master Chair with Vistage International Group, and Craig Kaufman, Founder and President, Kaufman Realty Group, on Family Business Radio’s weekly program.

Larry began by describing Vistage, a company in its 53rd year, as the world’s largest CEO-support organization. It is structured by groups made up of 12-15 members whose purpose is to develop these top people in their various companies so that their businesses—and the individuals themselves—flourish. At which point, Craig jumped in and described Larry’s role as Master Chair  as “a great herder of cats.” 

Vistage encourages its members to get above the fray. Larry said, “I tell all my CEOs their job”, which is to:

• Set the long-term vision and culture
• Hold everyone accountable
• Establish and maintain the critical relationships for the business
• Develop key people.

As head of his own company, Craig has been a Vistage member for 12 years. Stability is what he prizes from his association with Vistage since his business is hyper-cyclical. He also admitted to a common problem of CEOs and family business owners—that they get buried and isolated in running the day-to-day operations. “If we don’t have people to help us work on the business rather than in the business, we can become very myopic,” he said.

Craig mentioned specifically one of Larry’s consistent mantras—“You plan for a crisis before the crisis.” For instance, in February 2003, an economist spoke to Larry and Craig’s group who basically forecasted the economic downturn we are now in. Craig said that he remembered so many people felt broadsided by the crash of 2008. However, after hearing the economist, his group’s focus shifted to creating value in their companies and three members sold at the top of their markets, prior to the crash.

By using his group as outside advisors, Craig has leveraged his experience at Vistage. He pointed out, “Most of us can see things so clearly in others that we are blind to in ourselves. In the beginning at Vistage, we were too nice to each other. But then we realized that we were investing too much time and money to “be nice.” For instance, I tend to fret on things. Finally one day, someone in the group called me [the name of a common acquaintance] who was a known worrier and fretter. I vowed to never be called that name again.”

Another group that Craig regularly deals with is his family, who are investors in several of his real estate ventures. Theirs is a yin and yang relationship, as with so much in life. He said that the good part is when you prove your credibility in your area of expertise. The danger in his circumstance is when you treat your family as family rather than as investors. Inevitably, the day arrives when you have to deliver bad news. He said he used to hate certain family get-togethers, even weekly phone calls, until he developed his “body armor” so that he could handle these encounters with confidence. With a consultant, he developed a script, a set of guidelines and boundaries, to help him get through the especially hard ones. He also shared the advice from his father, who spent his career on Wall Street: “Losses are losses. Don’t fret about it. Move on.”

Our guests mentioned a few worthy books:

Recommended by Larry:

• “Fierce Conversations” by Susan Scott, a Vistage chair. An impactful book for business owners that shows them how to have tough talks. By the way, it is fierce, not in its negative sense, but whenever something is a real experience leading to real change. Another bit of wisdom from Craig and Larry: you have to be willing to engage in some fierce conversations with your trusted advisors.
• “Growing Pains” by Eric G. Flamholtz and Yvonne Randle. A book on how to transition from an entrepreneurial company to a professionally-managed one.

Recommended by Craig:

• “E-Myth” by Michael Gerber. Craig said it helped him realize that business was a marathon, not a sprint.

Please download the entire conversation from our website. Craig and Larry shared a wealth of hard-won knowledge and wisdom that is sure to benefit you.

Craig Kaufman, Kaufman Realty Group, 3098 Piedmont Rd., Suite 490, Atlanta, GA   Telephone: 404-816-0036
____
Larry R. Hart, Master Chair, Vistage International, Inc., 3712 Eaglerock Drive, Atlanta, GA 30340   Direct: 770.938.8174  •  Cell: 404.405.0759  •  Fax: 404.521.4992   •  Email: larry.hart@vistage.com  • Website: www.vistage.com/chairs/larry.hart.html