Sunset Family Business Radio

Multi Generations in a Family-Owned Business Featuring Rick Bailey & Company

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For the first time in history, as many as four different generations are working side-by-side in business today.  Mixing multiple generations in any workplace has proven to be challenging.  But all the more so in a family-owned business where you not only have the complexity of different generations, but the added element of family history that can add to the challenge.

Our guests on Thursday, March 18^th have made a great discovery—if you learn how to leverage the strengths of each generation you can greatly enhance your business and ultimately have a great competitive advantage.

When Rick Bailey launched his insurance agency in 1978, he had no idea that one day his three daughters would be a part of his company.  Fast forward and Amanda, Delane and Jennifer have all joined their father in the business and Rick and his clients couldn’t be more pleased.

Rick and Amanda will join us to talk about how this father and daughters have been able to come together to build an exceptional agency that will be able to continue to serve their loyal clients for many years (and more generations) to come.  They will especially focus on how they have come to appreciate, embrace and leverage three different generations.

They will share their perspective about what has made the family-business thrive and provide helpful insights for parents who are considering bringing their children into their business—and children who are considering joining an existing family-business.

We know you will take away some great insights from the lively discussion with this father-daughter team.  Listen in live right here at wwwfamilybusinessradio.businessradiox.com this Thursday, March 18th from 1:00pm-2:00pm. Or, download the Podcast that will be posted the Monday following the live broadcast.

Our Guests:

The Agency:  Rick Bailey & Company is a family-owned insurance agency located in Woodstock, GA of knowledge, experience and world-class customer service.

Sunset Family Business Radio

RECAP: Preserving the Family-Business: The Collaborative Process Alternative

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Is there a way to keep the family business in tact even during a divorce?  Our March 4th broadcast on Family Business Radio, hosted by Meredith Moore and Pat Romboletti, tackled this subject with the help of our experts.  Our guest included Amy Waggoner, Partner with Waggoner Hastings, LLC, Robert Bordett, CFP and SVP of Consolidated Planning Corporation, and Marsha Schechtman, Licensed Clinical Social Worker and divorce coach.

Our panel gave us an insiders’ tour of a relatively new process called collaborative practice, an avenue that can be used in cases of divorce in a family-owned business to ensure that the divorce does not destroy the family business.

The Collaborative Divorce Process is a way of practicing law where the attorneys for both of the parties in a divorce agree to assist them in resolving conflict or legal issues using cooperative strategies rather than adversarial techniques and court proceedings.

Collaborative practice uses specially-trained professionals from several disciplines—such as law, financial planning and social work—to create a team to help arrive at solutions that minimize the destructiveness that a divorce can wreak on individuals, family systems and businesses.

Amy explained that the collaborative process starts with an appointment with the attorney to make sure collaboration is appropriate for the situation. If it is agreed that the case is appropriate, both sides work with an attorney and team committed to the collaborative process.  From there, the case is triaged: referrals made, documents signed, teams formed. According to Bob, the next stage involves meeting with the neutral team members (in “four-way meetings”) to further understanding, including such sticky matters as the emotions attached to finances.

And speaking of finances, here’s something that will get everyone’s attention. Bob shared research showing that the average collaborative case in Atlanta takes about 7-8 months and costs roughly $24,000-$26,000. In contrast, Amy said—disclaiming from the top that there is no such thing as a typical litigated case—that in Atlanta in a jury trial of a divorce with medium complexity, the average cost is about $100,000. Per party. Just for the litigators.

Take that financial cost and now tack on the emotional cost (and who in today’s society doesn’t know someone who has been scarred by divorce?).  Marsha highlighted the children-centered aspect of the collaborative process. She said that the aim of the process is to have the adults see that they are “un-coupled, but still co-parents.”  The collaborative practice is all about mitigating the damage on all family members.

Other not-to-be-missed topics discussed in the hour-long conversation included:

• Some examples of how to handle the structure of the business when one non-working party to the divorce wants a piece of the company.

• The special problems presented by multi-generational family members in the business when a divorce occurs.

• How to best help non-family members who work in the business during a divorce.

• Personal reflections from the panel members on why they choose to work in a collaborative practice.

• Ways to use collaborative practice in areas other than divorce.

• A discussion of resources available to help you get educated on collaborative practice.

Be sure to download the Podcast to hear all the powerful concepts our panel shared.

And for more information on the Collaborative Process visit the following site:  Atlanta Collaborative Divorce Alliance

You can also contact our guests directly:  Robert D. Bordett, CFP, CDFA, Consolidated Planning Corporation-Telephone: 404-892-1995-Email: bob@u2agree.com//Marsha Schechtman, LCSW-Telephone: 770-753-4911-Email: marshaschechtman@atlantanpc.com//Amy Waggoner, Waggoner Hastings, LLC-Telephone: 770641-8200-Email: awaggoner@atlanta-familylaw.com

Sunset Family Business Radio

Using Collaborative Practice to Preserve the Family Business During Conflict

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On Thursday, March 11^th (live at 1:00pm) we will welcome three guest, Amy Waggoner, a leading Atlanta divorce attorney and Partner with Waggoner Hastings, LLC, Robert Bordett, CFP, CDFA, SVP Consolidated Planning Corporation, and Marsh Schechtman, LCSW who will tackle the subject of resolving major conflicts, including divorce, that could have the potential to not only destroy the family, but also the family business.

Our team of experts will discuss collaborative practice as it applies to family business issues.  Collaborative practice is a multidisciplinary approach to dispute resolution in which the parties work with a team of professionals, including lawyers, financial neutrals, and facilitators, to create a solution that meets the needs of all involved.  Collaborative practice can be used in negotiating original corporate formation as well as in negotiating corporate dissolution.  Collaborative practice also may be used in divorce to ensure that the divorce does not destroy a family business that the parties have worked so hard to maintain.

Our prior shows have emphasized planning around a number of different issues that family businesses face, and this show is no exception.  Understanding the value of the collaborative process will allow you to be prepared if conflict arises.   The show promises to be a lively and informative discussion so please be sure to join us–or download the Podcast after the show if you can’t listen live.

Our Guests

Amy K. Waggoner is a collaborative family law attorney.  Her focus is working together with clients in transition to find creative solutions that promote the best interests of the family and the children. In addition to the collaborative practice of family law, Amy serves as a Guardian ad Litem to protect the interests of children who are involved in contested custody matters and regularly volunteers her time in helping children and families through the Atlanta Volunteer Lawyers Foundation.

Amy is a founding member of the Atlanta Collaborative Divorce Alliance, and a member of the International Academy of Collaborative Professionals, the Collaborative Law Institute of Georgia, the Family Law Section of the Atlanta Bar Association, the State Bar of Georgia, and the State Bar of Tennessee.

She regularly lectures on collaborative and family law issues, particularly those involving implementing creative, non-adversarial solutions to legal issues.

Amy Waggoner, Waggoner Hastings – Telephone – 770-641-8200

Robert D. Bordett is Senior Vice President of Consolidated Planning Corporation.  He is a Certified Financial Planner, Certified Divorce Financial Analyst, and a registered mediator and arbitrator with the Georgia Office of Dispute Resolution. He is committed to positive outcomes for divorcing families.

Bob has spent more than 25 years providing financial expertise in collaborative practice and mediated divorce proceedings.  He is past president of The Collaborative  Law Institute of Georgia, past board member of the International Academy of Collaborative Professionals (IACP) and a member of the IACP Advisory Council on Collaborative Practice and Training.  In addition, he is past president of the Georgia Society of the Institute of Certified Financial Planners, served as a National Committee member for the Institute of Certified Financial Planners, and is a founding member of the Family Mediation Association of Georgia.  In addition, Bob is a current member of the Association for Conflict Resolution, National Association of Tax Practitioners, Financial Planning Association, and Association of Family and Conciliation Courts.  He has written numerous articles on financial planning and Collaborative Practice that have been published in the Atlanta Journal Constitution, Journal of Financial Planning, Georgia Family Mediation News, Fidelity 401K magazine and has appeared on CNN Sunday News.

Robert D. Bordett, CFP, CDFA, Consolidated Planning Corporation – Telephone – 404-892-1995

Marsha has a Masters degree in Clinical Social Work from Florida State University.  She has been a clinician for over twenty five years and has been practicing in the Atlanta area since 1982.

Marsha has had a full time private counseling practice since 1990 where she works with adults, adolescents and children in individual, family and group settings. For the past ten years, a good portion of her practice has been providing marital therapy to couples. She has also assisted couples and families who are transitioning as a result of separation and divorce. Marsha has provided Co-Parenting Counseling as well as Parent Coordination services for couples and families.

In 2004 she received her training as a Collaborative Divorce Coach and Child Specialist. She has been a part of many Collaborative Interdisciplinary Teams as a Divorce Coach or Child Specialist. Marsha is a board member of the Collaborative Law Institute of Georgia, serves on the research committee of the International Academy of Collaborative Professionals and is a member of the IACP. Marsha has facilitated a number of CLIG Practice and Organizational Development Group (POD) meetings, providing continual education for members, is a trainer for CLIG’s introductory and advanced trainings and provides basic and advanced training for collaborative professionals throughout the United States. Marsha is a registered general/civil mediator and divorce mediator.  Marsha is an active member of the National Association of Social Workers and the Academy of Clinical Social Workers.  Marsha Schechtman, LCSW – Telephone – 770-753-4911

Sunset Family Business Radio

Recap: March 4th Broadcast-3 Experts with Strategies for Preserving Wealth

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The Family Business Radio broadcast on March 4^th offered a penetrating look at the various aspects of finances for the family-owned business. Insights into this integral business sector where given in a round-table discussion format by Christina Napoli, VP-Commercial Banking for First Citizens Bank, Anita Pittman, CPA and Tax Partner with Cherry, Bekaert & Holland, and lawyer Loraine DiSalvo, Partner with Morgan and DiSalvo, moderated by Family Business Radio hosts Pat Romboletti and Meredith Moore.

Loraine set the stage by sharing her experience in the areas of estate planning, tax planning, and succession planning, in which she has often found that the bulk of a business owner’s estate is the business itself, and therefore illiquid. It is a circumstance that increases the difficulty of the estate tax situation and underscores the need for pre-event planning. One document that she highlighted as especially critical was the buy/sell agreement, which spells out the person or entity that has agreed to assume operation of the company, either temporarily or permanently, should something happen to the primary owner-family member.

From her perch as a CPA focusing on partnership taxation, executive compensation planning, and merger and acquisition work—plus having grown up herself in a family-owned business—Anita suggested that, if the weak economy has depressed company share value, now is a good time to think about transitioning some of the ownership to other family members.

That opening gave way to a lively and frank discussion about passing on ownership to children, especially when the children don’t welcome it. Loraine cited this circumstance—forcing unwanted ownership onto children—as the number one reason for the failure of family-owned businesses. Anita discussed the resulting conflicts that erupt among the children, stressing that upfront planning and transparency head off those problems.

As a banker, Christina pointed out that unwilling heirs affect the availability of financing as the bankers try to understand where the control now lies. Her rule of thumb is that if a person has 20 percent or more of ownership in the business, then they need to be involved in the day-to-day business and adding to profitability.

From this point in the broadcast, the participants delved into a range of topics that affect all family-run businesses:

• Structuring your business model appropriately from a tax POV.
• The definition of “long-term” in these fast-changing times. (Hint: it’s not five years anymore.)
• Setting up incentives for family members and non-family members.
• Awkward Conversations 101. Apparently, there are no magic words when it comes to the discussion of money and family.
• The view of family-owned businesses in today’s banking industry.
• A riveting discussion on the nearly-inexplicable status of the federal estate tax.
• Best ways to use your team of trusted advisors.

Be sure to listen and download the Podcast to hear all of the details on the above topics.

In the end the overarching theme of our experts was echoed in the 3 tips that our guests gave at the end of our broadcast—plan  plan, plan—plan early, plan often and review frequently.  And then plan some more.  Oh, yes—and throw in a mighty blast of clarity. All five participants agreed that these two key ingredients, planning and clarity, will help family businesses build wealth and preserve it.   Loraine also left our listeners with a great book recommendation:  “How to Run Your Business So You Can Leave it in Style” by John H. Brown.

We extend a big thank you to our three knowledgeable experts and newest members of the Family Business Radio community.  You can contact our guests as follows:  Loraine DiSalvo, Partner, Morgan and DiSalvo, PC, www.morgandisalvo.com,Email: ldisalvo@morgandisalvo.com–678-720-0750//Christina Napoli, VP First Citizens Bank, www.FirstCitizensonline.com, Email: christina.napoli@firstcitizensonline.com–678-624-4880// Anita Pittman CPA, Partner Cherry, Bekaert, Holland, www.cbh.com, Email: apittman@cbh.com–404-733-3221

Sunset Family Business Radio

Recap: February 25th interview with Sara Burden, Vice-President at Walden on How to Maximize the Multiples When you Sell

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Sara Burden joined us last week and her tape is jam packed with great advice, so download and listen to Sara’s tape for a complete step-by-step guide to putting all the pieces in place for a successful sale that maximizes those multiples

But before we got into the details, Sara shared her insights on these volatile economic times and she has good news. She’s seeing more M&A activity since January of this year. Business owners are feeling like they’ve survived, she said—“The thaw has begun.”

Sara continued by discussing the not so intuitive idea that you should plan and work toward selling your business from the day you open your doors. You can do this by instituting best accounting, inventory management and quality controls practices in the early stages since what buyers look for are good, in-place systems. So—prepare your exit the day you open the door—and then stay on top of everything.

And if you didn’t do that planning in the first days, then what? Sara said that she likes to start talking to clients 1-3 years out from when they actually want to sell. That time frame gives her the best opportunity to assess the business and suggest and implement changes.

As part of the check list, Sara suggests that you eliminate items that don’t add value, such as obsolete inventory and underperforming employees. At the same time, she encourages clients to take actions that create value. For instance, update your website, something not many people would have thought of as recently as five years ago. These days, your website is another face of your company. It’s your digital footprint to go along with your physical one. Both must present the best image possible to buyers.  First impressions happen virtually as well these days.

She also stressed assembling the right professional team—attorney, accountant, business broker, etc. You want pros who understand your goals and objectives, and are willing to get on the same page with you. She said that you may have to sit them all down and say, “I want you to protect me, but I want you to get the deal done.”

And she noted that it could be that in buying or selling a company, you may need a different team than the advisors you’ve been working with. For instance, a transactional attorney, instead of a litigator. She also recommends that a seller hire a consultant who can help prepare the business for sale, prepare documents and do the negotiations. When the company is the seller’s baby, sometimes it’s a situation that’s just too emotional for the seller.

In addition to getting your advisors on the same page—you will need to be sure your family is too or the deal could fall apart at the last minute.  There are many more tips on Sara’s Podcast, so download it now.

Thank you Sara for being a part of our Family Business Radio community.

Sara can be reached at Walden Business (www.Waldenbus.com), Telephone: 678-277-9951  Email:  sb@waldenbus.com

Sunset Family Business Radio

Strategies for Keeping the Wealth That You Build

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Building a family-business is a labor of love–most of the time.  After all of your time and effort, you want to be sure that you and your family retain as much of that wealth as possible.

Our guests on Thursday, March 4, 2010 are experts in helping you do just that.  They will share their insights and tips with you in this informative presentation–so be sure to have a paper and pen ready to take notes.

Our guests will be:

Christina Napoli. Christina is currently a VP in Commercial Banking at First Citizens Bank, a new addition to the Atlanta financial services lineup. Christina has a long history of providing customized banking and investment services to business owners, entrepreneurs and professionals in the metro Atlanta area.

Christina is a graduate of the Greater North Fulton Chamber of Commerce’s Leadership of North Fulton Class of 2007.

Although Christina is originally from the Midwest, she now considers herself a true Southerner.  Currently living in Johns Creek, she has two sons and enjoys cooking, traveling and snorkeling.

Christina Napoli, VP First Citizens Bank
www.firstcitizensonline.com
Email: christina.napoli@firstcitizensonline.com
Telephone: 678-624-4880

Anita Pittman. Anita is a Certified Public Accountant and a Tax Partner with  Cherry Bekaert & Holland (CB&H) based in the Firm’s Metro Atlanta practice.

Anita’s practice focuses on the income and estate taxation needs of clients, providing assistance with the tax and accounting compliance and planning issues surrounding partnership taxation, executive compensation planning, estate tax matters, merger and acquisition work, corporate reorganizations, and foreign investment in the U.S., as well as other more general tax and accounting concerns.

Anita began her career in the Chicago office of Arthur Andersen & Co.  Prior to joining CB&H through a merger in 2008, Anitaserved as director of tax services for Massey + Pittman, CPA, P.C. Anita earned her undergraduate degree from Emory University where she graduated magna cum laude and was elected to Phi Beta Kappa. She received her Master’s Degree in Management with concentrations in Accounting and Quantitative Methods from Northwestern University’s Kellogg Graduate School of Management. At Northwestern, she was a member of Beta Gamma Sigma and Beta Alpha Psi and graduated as a Distinguished Scholar. Licensed to practice as a Certified Public Accountant in Georgia, Anita is actively involved in the Real Estate Section and Financial Literacy Committee of the Georgia Society of Certified Public Accountants (GSCPA). She is a graduate of the Georgia Society’s Leadership Academy for CPAs, has co-chaired the Leadership Academy Class Project committee, and currently serves on the GSCPA Governing Council.

Anita Pittman, Partner, Cherry, Bekaert, Holland
www.cbh.com
Email: apittman@cbh.com
Telephone: 404-733-3221

Loraine M. DiSalvo. Loraine has been practicing law in Atlanta since 1997 and is a Partner with the firm of Morgan and DiSalvo, P.C.  She has received an “AV – Preeminent” rating from Martindale-Hubbell, one of the oldest and best-known lawyer directory and rating services.  Her areas of concentration include Estate Planning, Tax Planning, Probate, Estate and Trust Administration, Estate and Trust Dispute Resolution, Business Succession Planning, and Charitable Giving.  Loraine specializes in addressing the unique needs of high-net worth individuals and families, including those with closely-held businesses.

Loraine is currently serving as the Secretary of the Estate Planning and Probate Section of the Atlanta Bar Association, and as the President-Elect for the Professional Women’s Information Network.  She is also the host and a co-founder of the North Fulton Neighborhood Networking Breakfast for the Georgia Association for Women Lawyers.

Loraine also holds memberships in the Georgia Bar Association, the American Bar Association, and the Stonewall Bar Association.

An Atlanta native, Loraine graduated cum laude, with distinction in History, from Georgia State University and earned her J.D. degree, with distinction, from Emory University.

Loraine DiSalvo, Morgan and DiSalvo, PC
www.morgandisalvo.com
Email: ldisalvo@morgandisalvo.com
Telephone: 678-720-0750

Sunset Family Business Radio

Recap: Last week's show with John Dillard, CPA

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In the premiere interview on Family Business Radio, Pat Romboletti and Meredith Moore welcomed John Dillard, owner of HisCPA  (www.hiscpa.com) an Atlanta-area CPA for more than 30 years.

In setting the stage for their discussion, Meredith shared some family-owned business statistics, courtesy of the Cox Family Business Center at Kennesaw State University under the direction of Dr. Joseph Astrachan, such as:

• 80% of the world’s businesses are family owned.

• Family-owned business account for more than half of the U.S. gross domestic product.

John began by explaining the difference between a CPA and an auditor.  He described an auditor as someone who comes in after the fact and interprets the data, “like counting casualities after the battle.” A CPA, however, is proactive and the best ones help the owners of family businesses run the company, including helping to establish policy and contemplating the future. “You want a CPA who has empathy for your company,” he pointed out, and acts as a virtual CFO/virtual controller.

When asked how a family business owner can best partner with a CPA, he advised to “call and call often,” but especially when something major is under consideration, like buying a business, adding a partner, dissolving a partnership, installing a health plan, etc.

Before bringing new family members into the business, John recommended that a shareholder agreement be drawn up before that person comes on board. Assuming no dramatic change in the company, this document should be reviewed every 5-10 years.

With succession planning, he advised that you begin by knowing the worth of your company, so get a business valuation. If your business grows rapidly, the valuation needs to be done yearly; for those companies enjoying steady growth, every 5-10 years is sufficient. John also recommended that succession changes be implemented over time to allow the new person time to mature into their role. Finally, he suggests that you hire a competent tax attorney.

The final discussion centered on how a family-owned business should deal with their team of trusted advisors. John’s thoughts were that the business is best served when the advisors work in tandem—even when the opinions differ.  A little healthy debate can serve you well.

And John’s three parting tips:

1. Live below your means. Financial hiccups will occur; it’s not a matter of “if.” So have a cushion.

2. Know when you need to get a financial “second opinion.”

3. Be debt-adverse

Thank you John for being a part of our family-owned business community and thank you for your expert advice.  John Dillard, can be reached at His CPA, PC, www.hiscpa.com 770-814-9304.

Sunset Family Business Radio

But I Thought my Business Was Worth So Much More.

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When do you start to prepare to sell your family business?  Well—our guest will give you the specifics—but I know the answer will surprise you.

You give it your all—-blood, sweat, tears and what sometimes seems like 26 hours a day!  You have great revenues—but have you created great value?  If so, you reap the rewards in multiples that you have dreamed of—but if you haven’t had a road map for creating sustainable value—and if the family isn’t aligned with the road map—you will all sail off into the sunset in a much smaller vessel.

Our guest on Thursday, February 25, 2010 will give you that road map so that you and your family can build a business, build wealth, a legacy—and when the time is right—you will know how to successfully sell your business and embark on your next great voyage.

We will be welcoming Sara Burden, Vice President for Walden Business, Inc. where she assists corporations and individuals in the sales, acquisition and mergers of light manufacturing, distribution, and service companies with valuations up to$100 million.

While Sara specializes in owner representation, she has also handled unique buyer representation in the national marketplace.   She came to her current role after ten-plus years in Corporate America and brings the important perspective of an entrepreneur as well, having built a very successful permanent staffing service placing high-end administrative support personnel.  During her entrepreneurial years, Sara acquired a temporary service, giving her unique first-hand experience that her clients benefit from as well.

Sara is a distinguished professional.  She is one of less than 100 individuals in the United States to have earned the M&AMI (Mergers & Acquisitions Master Intermediary) designation through M&A Source.  She also holds the Certified Business Intermediary (CBI) designation through the International Business Brokers Association.

We are pleased to have someone with Sara’s first-hand experience, outstanding credentials and successful track record as our guest.  You won’t want to miss this informative discussion.

Sara Burden, Vice President, Walden Business, Inc. www.waldenbus.com 678-277-9951