While succession and estate planning are two critical pieces to any family-business strategy, too often key advisors are left out of the equation when developing those plans.  In so doing, you can jeopardize all of your best efforts.  On the other hand, coordinating efforts and getting everyone in the family involved with your team of advisors can make all the difference.

On our May 27th broadcast, our guests will be Brad Beisbier, Sr, SVP, RBC Bank and Cleve Hill, Attorney at Law, Bettis Law Group, LLC, who will help us understand how to leverage your trusted advisors to ensure that your family and family-business can weather even the most difficult times.

Our discussion will look at some situations that did not turn out as the family-business owner hoped and we will discuss strategies to prevent those situations for your business.

As always, there will be lots of useful and practical information shared and many take always for you and your business.

Our guests:

Brad Beisbier, Sr

Brad Beisbier, Sr was born and raised in Wisconsin where he received an undergraduate degree of Business Administration in Finance from the University of Wisconsin – Oshkosh.  After completing Wells Fargo Bank’s (formerly Norwest) management training program, Brad and his wife relocated to Atlanta where he joined Bank of America (formerly NationsBank).  While at Bank of America, Brad assumed numerous production and leadership roles.  He also received his MBA from Georgia State University’s Robinson College of Business and his Green Belt Certification as part of Bank of America’s Six Sigma efforts.

Brad joined RBC Bank in February, 2006.  Since then, he has been recognized as a Star Performer and served in several different production, strategic, and leadership roles.  Brad has built a portfolio of commercial operating relationships with an emphasis in manufacturing, distribution, and various professional services.  He serves on the board of the Greater North Fulton Chamber of Commerce and is a member of several industry and community associations.  Brad maintains a residence in Cumming, GA along with his wife and their three children.

Brad Beisbier, Sr, Senior Vice President, RBC Bank, (678) 987-7183
    

Cleve Hill

John Cleveland (“Cleve”) Hill  joined Bettis Law Group, LLC  in 2007 as an associate attorney.  Mr. Hill began his law practice in 2004 at Powell Goldstein LLP (now Bryan Cave Powell Goldstein), one of Atlanta’s oldest and largest law firms, where he practiced commercial bankruptcy law.   Presently, Mr. Hill focuses his practice in the areas of estate planning, including wills, trusts, special needs planning, powers of attorney, health care directives, probate and estate administration, conservatorships and guardianships, and small business entity formation.

A native of Cherokee County, Georgia, Mr. Hill attended Oglethorpe University in Atlanta, Georgia, where he received his B.A., magna cum laude, in 2001. While at Oglethorpe, Mr. Hill served two terms as student body president.  At graduation, Mr. Hill received the prestigious James Edward Oglethorpe Cup, which is awarded annually by the faculty of the university to an outstanding senior, along with the Pattillo Leadership Prize, the Charles Longstreet Weltner Award, and was an inaugural recipient of the President’s Community Service Award.  

Mr. Hill attended the Mercer University Walter F. George School of Law in Macon, Georgia where he obtained his J.D., cum laude, in 2004. While at Mercer, Mr. Hill served on the Editorial Board of the Mercer Law Review and graduated in the top 10% of his class. 

Mr. Hill resides in Canton, Georgia with his wife, Allie, and puppy, Reagan.  The Hills attend Woodstock First Baptist Church.   Mr. Hill is very active at his alma mater where he currently serves on the Oglethorpe University National Alumni Board of Directors and the President’s Advisory Council.  From 2007 to 2009, Mr. Hill served on the university’s Board of Trustees.  For the 2008/2009 academic year, Mr. Hill served as Chairman of Campus Life Committee of the Board of Trustees.

John Cleveland (Cleve) Hill, Bettis Law Group, LLC, 404-475-8041

Sunset Family Business Radio

Recap: Lisa Glauber Shippel – Estate Planning-Where Do you Start?

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On May 20th,  Family Business Radio host Pat Romboletti  flew solo (co-host Meredith Moore was out of town) and welcomed lawyer Lisa Glauber Shippel , Rolader & Shippel, P.C., who has a large part of her practice devoted to estate planning of all sizes. In addition to being a certified mediator in the State of Georgia, Lisa grew up in a family business and is now the sibling not involved in that family business.

Lisa’s family has a business operating camps in the NY area, but Lisa opted out and chose the path to a law career instead. 

Lisa and Pat began the discussion on estate planning by talking about the pitfalls to not having a proper plan in place. For instance, it complicates banking relationships and the loan process which the current recession has already complicated. It makes it hard on the heir in the business because it distracts them from taking over the reins. And, something Lisa knows about first-hand from her own family situation, if you have some children working in business and some not—how do you equably leave the estate to your children? What if the non-involved heir wants to get into the business now? If you want to leave the business to the child working in the business, how do make a fair distribution to your children not in the business? As you can see, the issues are varied and very thorny.

So–where to start estate planning process?

• First, sit down with a team of experts—attorneys, wealth managers, and CPAs. With their help, you will want to customize a plan based on your individual needs. “No form, no cookie cutter plan, will work,” Lisa said. “Every family-owned business has different assets and different goals. Your experts need to understand all the nuances of your business.” By the way, Lisa also pointed out that you need to have a sense of security that you can say anything to these people, without fear that you will be judged or information will be leaked. Honesty is the best policy when putting together a workable estate plan.
• Before the first meeting, gather a list of assets with their valuations. Also have in mind who your beneficiaries are. An end vision is nice to have, too.
• Be prepared to discuss succession planning as regards the management of the business. It is a complex process that professionals who know what they’re doing can make easier for you.
• There also needs to be a discussion about the way you want the business valued. That is, how to get it appraised—whether to go for the highest or lowest valuation—to reduce the in-fighting once you’ve passed.
• And the point at which to do all this? “Do it right away,” Lisa advised. No matter the size of your company, it’s always better—actually, cheaper—to have something in place.
• Finally, understand that much is out of your control. The estate plan is not a permanent document—it changes with laws, as your family circumstance change, as the economy changes.

In the end, it is a gift, a wonderful legacy, that you can give your children upon your death to have thought through estate planning issues. Don’t be daunted. While unfortunately there are no black and white rules on how to set up an estate plan, you can organize a team of trusted advisors to help get you there.

Listen to all of Lisa’s excellent insights by downloading the full broadcast here.

Lisa Glauber Shippel, Attorney  at Law/Licensed Mediator, Rolader & Shippel, P.C., 11660 Alpharetta Hwy. Suite 630, Roswell, GA – Telephone: 770-442-0330. lisa@roladerandshippel.com

On previous shows, we have touched upon the topic of Estate Planning.  The topic has proven to be of great interest to our audience, so on Thursday May 20th we will tackle the topic in great depth. 

Our guest, Lisa Glauber Shippel will provide insight on the current estate tax landscape—where uncertainty still reigns. She will also discuss how to tackle some of the more complex estate planning issues that are unique to family-business owners, especially when siblings have different levels of involvement in the family-business.

As always, we promise the show will be informative as we explore this vital topic.

Our Guest:

Lisa Glauber Shippel

Since 1994 , Lisa Glauber Shippel has represented sellers, builders, developers, purchasers and lenders in thousands of residential and commercial real estate transactions. She has experience in handling zoning matters in the City of Alpharetta, the City of Roswell and Fulton County, Georgia. A large part of her practice is devoted to Estate Planning and Probate. She drafts estate planning documents including wills, trusts, and family limited partnerships. She also administers and probates estates of all sizes. Her business practice includes the set up of new businesses including corporations, limited liability companies and partnerships. 

She assists clients in the sale or acquisition of businesses. Lisa is also a Certified Mediator in the State of Georgia. Lisa provides private and court appointed mediation services to assist parties in resolving legal matters and disputes. She acts as a neutral to help the parties involved come to a resolution controlled by them. By avoiding litigation, the parties will also save time and money associated with litigation. Mediation services are available after normal business hours and on weekends to further assist clients in resolving their matters efficiently.

Lisa obtained her Bachelor of Science in Journalism from the University of Maryland in 1991 and her Juris Doctor from New York Law School in 1994. North Fulton County has been her home since 1994 and she joined the firm that same year. She is active in the community and with her children’s schools and activities in Alpharetta. She was a founding member of and currently sits on the Board of the Alpharetta High School Foundation.

Lisa Glauber Shippel, Esq. , Rolader &  Shippel, P.C., P.O. Box 1357, Roswell, GA 30077, Phone: 770.442.0330, Fax: 770.442.0641, Lisa@RoladerandShippel.com, www.roladerandshippel.com

Sunset Family Business Radio

Recap: Maxine Burton of burton + BURTON™ - A Total Family Approach to Building a Successful Business

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On Thursday, May 13th, hosts Meredith Moore and Pat Romboletti were honored to welcome Maxine Burton, president and founder of burton + BURTON™, a family-owned and -operated business since 1982 based in Bogart, Georgia that is one of the largest suppliers of balloons and coordinating gift products in the world.  With husband Bob serving as CEO and with son and daughter working in the business, Maxine’s company offers more than 15,000 products including latex and foil balloons, ribbon, floral supplies, plush ceramics and baskets.

burton + BURTON™ is imbued with family. It is the essential characteristic of its corporate culture. “The business is important because it supports us, but family is the main thing,” said Maxine. Very early, she realized that since her customers were mostly family-owned businesses, they liked knowing her family. So her children often traveled to gift shows with her and Bob. Now her two grandchildren do. The children greet customers at parties and hand out cookies to them. Their pictures appear in catalogues and they inspire product design. And not to be out-done by the younger generations, her mother still works at the company—arriving every morning at 6:00!

This total family approach permeates the relationship with employees. “I want to know all my employees and their families,” Maxine said. “We like to say that we work hard and play hard.” She is a big proponent of in-house wellness programs, like high-blood pressure checks and mammograms. burton + BURTON™ also has had an in-house beauty salon since 1987. “It’s important for our employees to feel beautiful. They’re on the front lines—the clients are not only talking to me. Besides, any company can have a product. Our people are actually the number one thing we’re selling,” she said.

Because of Maxine’s collegiate background preparing to be a teacher, she is a big believer in education, even to the point of developing a Balloon University held each July at the Atlanta, Dallas and Chicago gift markets. “It’s where we educate our customers on how to use our products. We also hold business and design classes. It makes sense to us because we need our clients to be profitable. I see it as a big circle,” Maxine explained.

During the current recession, burton + BURTON™ had to make changes, like every other business. “We had to do more with less,” she said. “But we do see the recession coming to an end. We had tremendous January shows, especially compared to last year.” One tactic Maxine pursued throughout the downturn, though, was to continue to develop new products. “Our customers want to see what’s new, regardless of the economic climate,” she said.

There is so much more to the story—from philanthropy to the story of how Maxine and her company dedicate themselves to continuously designing new and exciting products.  So please download the hour-long discussion.  We are certain Maxine’s enthusiasm for her business, her family, her employees and her customers and her commitment to her community will inspire you.

Maxine Burton, President and Founder, burton + BURTON™, 325 Cleveland Rd., Bogart, GA    706-548-1588

On our May 13th broadcast, we are honored to welcome Maxine Burton, President and Founder of burton + BURTON ^TM,   a family owned and operated business based in Bogart, Georgia.  If you have ever purchased or received a latex or foil balloon—you have probably touched one of her products.

Maxine will share the story of launching her business in 1982 under the name of Flowers, Inc. Balloons.  Along the way from those very first days to building a business that is today one of the largest suppliers of balloons and coordinating gift products in the world, Maxine has also managed to raise a family, travel the globe, participate in her community and create a business where people love to work and where three generations of a family come together to build this thriving (and still growing) business.

A 2008 recipient of the Georgia Family Business of the Year Award, Large Category, burton + BURTON ^TM,  employs over 300 people—-all considered an extension of the Burton family.

Her company offers over 15,000 products including latex and foil balloons, ribbon, floral supplies, plush ceramics, and baskets. Maxine’s husband, Bob serves as CEO and her mother, son and daughter all work along side her to ensure their customers have—“the TOTAL gift Experience.”

You won’t want to miss a minute of this Bogart, Georgia and family business success story.  As always—there will be great insights as we feature this newest member of our Family Business Radio community.

Our Guest:

Since 1982, as president and founder of Flowers, Inc. Balloons, Maxine Burton has established her company as a leader in the balloon and gift industry.  Maxine earned a Bachelor of Science in Education and a Master of Education from the University of Georgia, where she was a member of Alpha Xi Delta sorority.  Se has continued her education at Harvard Business School, taking executive courses in 1998 and 2001.  Maxine has received numerous local and national awards recognizing her as a leader in her industry and for her service to her community, including the William E. “Billy” Hudson Distinguished Citizen Award, NE Georgia Council of the Boy Scouts of America in 2008, The Leading Woman Entrepreneurs of the World by The Star Group and Outstanding Georgia Citizen by Secretary of State Cathy Cox to name only a few.

Current Boards/Activities include:  Women’s Leadership Board of Harvard, Business School, University of Georgia Arch Foundation Trustee and Board Member, Georgia Ports Authority Board, St. Mary’s Foundation Board, First American Bank Board, One Georgia-Bank-Founding Board Member, Development Authority Athens –Clarke Country Board, Member of the Committee of 200, Member of Society of International Business Fellows, Leadership Athens and Leadership Georgia.

Maxine Burton, President and Founder, burton + BURTON™, 325 Cleveland Rd., Bogart, GA    706-548-1588 or 800-241-2094

Sunset Family Business Radio

Recap: Exit Strategy Secrets that Build Value

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Continuing Family Business Radio’s record of on-point topics for family-owned businesses,  Mark Dayman of Cap-Val LLC joined hosts Pat Romboletti and Meredith Moore on Thursday, May 6th to discuss exit strategies and company valuations.

From his perspective of working for a national appraisal-litigation support-exit strategy firm, Mark shared the good news that many deals are still being done today, albeit often in distress situations. “Buyers are looking for the low-hanging fruit,” he acknowledged. So now is a great time to make sure you don’t end up in that situation and instead come up with your personalized exit strategy. For family-owned businesses, “…the real objective is to build value over time,” he pointed out.

According to Mark, there are three main ways to build value:

• Identify your “value worlds,” that is, the people or entities that will most likely buy your company, and then plan accordingly. For instance, if you plan to sell to family members, you will probably use fair market value, which is one of the lowest standards of value. At the other end of the spectrum, you might seek a strategic transaction (targeting a business concern that sees the value of your company and prefers to buy a going concern rather than build a similar company from scratch). Other value worlds include management buy-outs and employee stock ownership programs (ESOPs).
• Enhance your company’s ability to produce income. Many owners think the first way to improve cash flow is to reduce expenses. And while it’s certainly important, a better way, according to Mark, is to work on the top line—ask and answer the fundamental question, “What are we selling to whom and at what price?” Another practical way is to clean up the P&L. For example, take out the personal luxuries, such as lake houses and boats. “Don’t operate as an incorporated personal checkbook,” Mark said.
• Reduce the risk in your business. Simply put, the higher the risk, the lower the value. There are many factors that will reduce risk, but one very important way is to create transparency by making yourself obsolete. (Swallow hard, entrepreneurs.) Buyers want to know, want to see, that the business they’re buying will survive once the founder is gone.

We took an interesting turn in the discussion about risk. In general, large businesses are perceived as less risky than small businesses. Mark said there are several reasons for this assumption. For one, it is presumed that large companies control their markets better. Also, they are perceived as having greater control over their production and distribution. Additionally, it is assumed that a large company has its second layer of management in place and therefore its existence is not dependent on one person.

Good news for small/smaller companies! You can address these issues, in the appropriate scale and ratio for the size of your business, thus building value and being competitive with the big guys. Start with a business plan. Set up a Plan B. Clean up your problems, especially any litigation. All things within the grasp of any business of any size.

Mark also discussed the team of trusted advisors best suited for developing an exit strategy action plan. No surprise to see a CPA and attorney. But he pointed out that a good financial planner—for both the company and your personal matters—is a good idea. Also a coach for key executives is often helpful. Finally—”Sometimes it’s not the owner’s best friends. You need right answers, not easy answers,” he said.

This illuminating conversation is available in its entirety as a download. You will appreciate Mark’s straight talk and insightful observations. Including his encouragement that now is a great time to plan an exit strategy. “The bad economy is forcing you to run your business more efficiently than ever and there’s money available for good value,” he said. “Take control.”

Mark A. Dayman, CPA/ABV/CFF, CVA, CapVal-American Business Appraisers, LLC,  The McLean Group LLC Investment Bankers  , 3525 Piedmont Rd  BLDG 7  STE 300, Atlanta, GA  30305, Telephone: 678-662-6478, mdayman@capval-llc.com

If the adage is true that knowledge is power (and we think it is)—we can guarantee you will walk away empowered by our May 6^th broadcast.

A few weeks ago Ray Pagano and Gary Anderson told a story about a very happy ending to Ray’s exit strategy for his family-business.  But that is not always the case.  Especially not in this economy—-but the picture is not as bleak as you might imagine.

Our guest on Thursday, Mark Dayman of Cap-Val LLC, will share his expertise as we discuss how to develop multiple exit strategy options.  With his guidance, you will learn how to have more control of your exit, will better understand the factors that drive value and price, and will learn how to reduce your risk—all from the perspective of a business valuation expert.

Listen live at 1:00pm on Thursday May 6th–or if you can’t be with us then–you will be able to download the full broadcast  on this site after the show airs.

Mark is a Partner in the Atlanta office of CapVal – American Business Appraisers, LLC, and a Managing Director of The McLean Group, LLC Investment Bankers.    For many years he was the Managing Shareholder of Dayman Lurie & Goldsbury (DLG), a New England affiliate of BDO Seidman LP.  Mark has over 30 years of experience in enterprise appraisals and pricing, capital formation, franchising, and transactions.

Mark’s appraisal experience focuses on exit strategies and enterprise pricing, estates and trusts, and Fair Value.  He also uses these skills in litigation support and forensics, and he is a qualified expert in litigation matters in Federal, Bankruptcy and various state courts.  Mark is Accredited in Business Valuation (ABV) and Certified in Financial Forensics (CFF) by the American Institute of Certified Public Accountants, and is a Certified Valuation Analyst (CVA) accredited by the National Association of Certified Valuation Analysts.  Mark is also a member of the American Society of Appraisers, the Institute of Business Appraisers, and the Vermont and Georgia Societies of CPAs.

In his capacity as a licensed investment banker, Mark has worked on transactions involving the sale of businesses in a number of industries with prices as high as $135 million.  His capital formation skills also extend to various forms of debt, as well as the use of franchising to form capital.  He holds Series 62 and 63 securities licenses.

A graduate of the University of Vermont, Mark is a frequent guest speaker to various user groups on matters of value, pricing, value enhancement, exit strategy, M&A, and franchising.  While speaking venues often include related professional associations and bar associations, he is increasingly asked to speak at franchisor corporate events and annual franchise conferences to help focus attention on franchisee exit strategies to preserve continuity in brands.  Mark is a member of the Board of Directors of the Southeast Franchise Association.

Mark A. Dayman, CPA/ABV/CFF, CVA, CapVal-American Business Appraisers, LLC, The McLean Group LLC Investment Bankers, 3525 Piedmont Rd  BLDG 7  STE 300   Atlanta, GA  30305  Telephone: 678-431-0775  Email: mdayman@capval-llc.com

Sunset Family Business Radio

Recap: Taking Your Family Business Global

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On Thursday, April Family Business Radio hosts Meredith Moore and Pat Romboletti were happy to welcome this week’s guests—Erick Papp, international executive for 28 years, and Richard Bennett, business and corporate law attorney with Kitchens Kelley Gaynes, PC.

The big take-away from this week’s discussion was that the seemingly treacherous waters of global business begins and ends with one’s own assumptions about the way things should be. Before venturing onto the global stage, you really need to be open to different, sometimes radically different, perspectives.

This insight first emerged when Erick talked about his stint in Ecuador as the manager of a banana plantation. In this capacity, he was actually responsible for a broad range of duties, across all functions, so that he was, in fact, fulfilling the role of what we would call in the States a CEO/COO. As Richard quickly pointed out, in different countries, titles mean different things, something that is true of a whole host of concepts. It is the wise business owner who scopes out as many of these differences as possible—and continues to stay alert to learning the local customs along the way.

Erick and Richard also discussed tax issues as relates to international business. Erick began by pointing out the big similarity—that is, all governments try to take as much money in taxes as they can. Sad, but true, across all cultures and countries. From there, though, taxation morphs into a thousand variations. For instance, in Ecuador, a manager is personally and legally liable for any discrepancies in the company’s taxes. Also, taxes are paid in advance in Ecuador.

Between the two of them, our guests developed a quick list of questions for business owners to address—before opening shop outside the U.S.:

• Does it make sense to expand internationally?

• If so, how is the best way to accomplish that?

• Should the expansion be done in large leaps or baby steps?

• What is the best way to structure the international business—as a subsidiary, joint venture, co-owned subsidiary, etc.? Is local ownership required?

• Who are the trusted advisors, both domestic and international, that are needed to help with the expansion?

As always, the complete podcast, including tips from our pros, is available as a download. Please take advantage of our guests’ expertise and knowledge in this exciting area of international trade and manufacturing. Especially as relates to this last bit of wisdom: The behavior of people in another culture may not—probably won’t—conform to your expectations.

Erick Papp, Telephone:  678-446-2055  Email:  egpapps@gmail.com

Richard Bennett, Attorney at Law, Kitchens Kelly Gaynes, P.C. – Telephone: 404-364-6630  Email: rbennett@kkgpc.com

Running a family business in the United States has its challenges, but things get very interesting when you also have family holdings and business entities outside of our borders.  There are many things to think about, from understanding the culture and customs to making sure that you have good financial and legal advisors who understand the laws and regulations where you are operating.

Our guests today both know this topic well and will be able to share valuable insights that can help you avoid costly mistakes if you decide that it’s time to take your family business global.

OUR GUESTS:  Eric Papp and Richard Bennett

Erick Papp is a Senior Executive with broad international management and operational skills. He has over twenty years experience running family owned businesses with full P&L and general management responsibilities.  He has led acquisitions, turnarounds, mergers, joint ventures and start-ups in a broad bandwidth of industries.  He has been directly involved in all the stages of growth and development of family owned businesses.  He has a proven track record of driving profitability through productivity, revenue increases and cost control.   As CEO of several organizations he has developed proactive working relationships with owners, board members, lenders, customers, vendors, and other personnel critical to overcoming the challenges particular to family owned businesses operating in the global market.

Born in Honduras, Erick lived half of his growing years in the Philippines and the United States.  He graduated from high school in Germantown, Tennessee. In 1981, after graduating from the Georgia Institute of Technology with a Bachelor of Civil Engineering he moved to Ecuador.  He began his professional career as a civil engineer in the petroleum industry.  Later he became an executive holding various management positions in multiple industries. Erick’s approach to diversity in the workplace and the global market has been positively influenced by his exposure to diverse cultures and environments.  He is fluent in English and Spanish.

Last year, in what has been his most daunting endeavor yet, he moved with his wife Sandra and their three sons to the United States.  He currently calls Alpharetta, Georgia home.

Erick Papp, Telephone: 678-446-2055 Email: egpapps@gmail.com

Richard H. Bennett is a shareholder with the law firm of Kitchens Kelley Gaynes, P.C., in Atlanta, Georgia. He joined the firm in 1998, and he practices primarily in the areas of corporate law, business transactions, and estate planning.

Mr. Bennett has lectured on the topics of business start-ups, business strategies, restrictive covenants, LLC operating agreements, Wills, and family limited partnerships. He is a member of State Bar of Georgia (Technology Section), the American Bar Association (Business Law Section; Real Property, Probate and Trust Section), and the Atlanta Bar Association.

Mr. Bennett earned his J.D. degree, cum laude, from the University of Georgia, his M.B.A. degree from the University of Georgia, and his B.A. degree from Emory University.

Richard H. Bennett, Attorney at Law, Kitchens Kelley Gaynes, P.C. – Telephone: 404-364-6630 Email: rbennett@kkgpc.com