Subscribe to LFO' s Blog
unHeritage – 11 Pitfalls to Family Legacy and How to Avoid Them
“unHeritage is definitely the lighthouse for protecting your family and wealth for generations. This book is a must read for anyone interested in legacy planning.” Enzo Calamo
Center for Family Conversations
The Center for Family Conversations (CFC) is a resource center that provides the integral tools and ideas in helping families establish a 100-year-plus Family Legacy Plan.
THE TYCOON PLAYBOOK – How Business Empires Are Built
The Tycoon Playbook course was created for business families who are already running a successful business and wish to ramp up their growth while preserving wealth for future generations. Specifically, the Playbook teaches high performance business owners the two most highly rewarded skills in business, namely deal-making and how to acquire cash flow producing business assets.
Post Tagged with: "Family business"
Five steps that will keep a family business alive—and entrepreneurial—for generations.
Children can now work in family business – The lack of any clear definition of “family” has child rights activists worried. If the law doesn’t clearly define ‘family’ then the fear is this exception being used as a loophole.
Working with family members: yes or no, and why?
The following answers are provided by the Young Entrepreneur Council (YEC), an invite-only organization comprised of the world’s most promising youn
Family-run companies need structure and careful planning. Your relationships and success depend on it.
Made in Germany Deichmann A Family Business In Germany the name Deichmann is synonymous with affordable footwear for the entire family. Heinz-Horst Deichmann gave up his orthopedic practice in 1956 to take over the family’s shoe business. Now Europe’s largest shoe retailer, with sales of over $6 billion in 2013, Deichmann-Schuhe SE also owns Rack Room Shoes and the Off Broadway chain in the U.S. Deichmann serves as co-chairman of the company’s administrative board, while his son Heinrich heads the company. The family doesn’t like being recognized as billionaires, because they live a relatively modest existence and think of their fortune as providing a mandate for social responsibility rather than a means for personal benefit. In addition to providing employees with generous benefits, they support various missionary and humanitarian causes including a program to help leprosy victims in India–a country Heinz-Horst has visited frequently. His social and charitable work earned him the Martin-Luther Foundation’s “Luther Rose” award.
The New EBITDA: Emotions Before Interest Taxes and Depreciation by Tom Deans, Ph.D. Sitting in the departure lounge at LAX, I couldn’t help but overhear a conversation between an investment banker and his younger associate. I learned two things. First (and most business travelers can relate), it is amazing how cavalier people are about discussing confidential details in public places. The second confirmed something I had been thinking about family businesses for some time. The older of the two bankers was whining about how he thought the slam-dunk deal they had just presented was now probably never going to happen. On and on he grumbled about the time he had spent running the numbers, lining up partners and generally bringing the deal to a crescendo, only to have the business owner change his mind about selling. The investment banker was completely perplexed about why the offer, the numbers, the multiples that looked so good weren’t enough to entice the owner to do the deal of a lifetime. It took everything I had to stop myself from leaping into the conversation and selling him a copy of Every Family’s Business (it wouldn’t have been the first time). But I exercised extraordinary restraint and settled back and listened to him talk about the clever structure of the deal, the tax that could have been saved and the instant wealth the owner would have secured if only he had been smart enough to take the deal. Emotions are Squishy – Not the Stuff of Deal-Makers in Suits The funny thing about listening in on a conversation is that the longer you listen the harder it is enter the conversation. So I bit my tongue and instead simply wondered how many other business brokers, M&A professionals and investment bankers expend such effort trying to bring deals to fruition only to have sellers back out. I wondered how an entire industry of intermediaries could so badly underestimate the emotional connection that owners have to their businesses, and also fail to understand how these emotions can scupper so much good work and extraordinary planning and lead the owner to ultimately destroy the business’s value. When really bright finance experts hear the word “emotions” you can so often see their eyes roll back and the calculators shut off. Yet students of the greatest financiers of all time – deal-makers like Warren Buffett – know that these people get deals done by running the numbers and then engaging business owners in the one corner of their life where most number crunchers don’t go – their family. It is the rare rainmaker who has both the left and right brain firing on all cylinders. Warren Buffett Buffett and other great deal-makers know that the sale of a business will typically result in a “liquidity event” that will leave owners with more wealth than they feel comfortable consuming. Most business owners accumulate wealth precisely by denying themselves consumption. Sellers will often kill deals, blaming a low bid price, […]
Building a Family Business that Lasts Dr. Joseph H. Astrachan, Executive Director of the Cox Family Enterprise Center at Kennesaw State University, speaks on on the topic of Building a Family Business That Lasts and provides viewers with four key points to walk away with.
A Family Wired For Perpetual Dependence by Tom Deans, Ph.D. When the sale of a family business is all about a founder becoming wealthy and their children losing their jobs, you can see why so few ever put themselves in play and sell. The CEO – the Chief Emotional Officer (Mom, and increasingly Dad) – just can’t stand to see the family pull itself apart. Killing the business with love has always felt like a better plan. With a wave of aging business owners trying to figure out how they’ll fund their retirement, you can understand the temptation to simply throttle back on their day-to-day involvement and draw a salary while Junior runs the business until the final curtain falls. Of course, as I’ve discussed in previous articles, with owners living longer, it’s improbable that Junior is going to hang around the business into his or her 70s, when Mom and Dad finally reach their 90s and hand over the reins of control – not operating control, I mean real control, control of the voting stock transferred when the last parent dies. How About an Exit Where Everyone Makes Money? But what if an advisor could frame the exit of the controlling shareholder as the day when all family members become wealthy? Far too often, death is the triggering event for the transfer of stock. Few children are offered an opportunity to risk their capital to buy the stock of their parents’ business at an early age. I recommend that when a child is 14, the parents and advisors begin the process of implanting the idea that the family business will be bought, not gifted, and that employment is different from ownership. For a variety of reasons, the majority of parents signal that there’s no real or pressing need to recycle dollars in the family: “Hang around long enough, Junior, and all this will be yours – for free.” Of course we know that nothing is ever really free and that while the ownership question is left hanging, there are as many underpaid children working in family businesses, as there are overpaid children. My experience on the speaking circuit is that few overpaid children ever risk their capital to buy out their parents. Why derail the gravy train? Parents who use their business to purchase and control family harmony do more harm than good and always pay the greatest price of all – a family wired for perpetual dependence. Family Business Math The dysfunction around the issue of compensation percolates and festers because the stakes have always been high. When Junior complains about low wages, some parents simply say, “If you don’t like what you’re paid, leave.” Emotionally and financially, it’s never been easy for a child to quit a parent’s business. Child Quitting Over Compensation + Aging Business Owner = Less Inheritance For Junior. You can see how family business math becomes really interesting when only one child working in […]
Enzo Calamo Is A Best Selling Author
Enzo Calamo is the Best Selling co-author of "How To Create Infinite Returns In Real Estate Using The Secret Asset: How To Recover All Business and Personal Expenses Using The Secret Asset" This is a must read for every affluent investor.
FAMILY OFFICE OF THE YEAR
Lugen Family Office was recognized as the Family Office of The Year in 2016 in Canada by Wealth and Finance International Magazine
Enzo Calamo Is A Gold Award Curator
Scoop.it describes Enzo Calamo "as a rock star of content curation."
Lugen Family Office is the Most Trusted Online Curator on Legacy Planning, Wealth Management, Financial Literacy, Family Business, Philanthropy, Technology Trends, Healthy Living, and the UHNW.
ALL POSTS ARE CURATED BY ACTUAL EXPERTS!
Check out our 11 Gold Award UHNW Newswires.
- Elvis Had A Fascinating Habit Involving CadillacsApril 28, 2017
- Top financial adviser: Just working hard will not make you wealthyApril 28, 2017
- Money is pouring into the world’s hottest investment product at nearly a record-setting paceApril 28, 2017
- A supermodel-backed music festival where tickets cost up to $12,000 turned into a nightmare — here’s what happenedApril 28, 2017
- BOOM! American business just figured out how to play the Trump trade shakedown gameApril 28, 2017
- The biggest driver of the American economy just slammed into a wallApril 28, 2017
- Tom Hanks thinks billionaires should pay for their own NFL stadiumsApril 28, 2017
- Nepal’s Richest Man Is Hosting An Extravagant Wedding For His Son In Udaipur; The Billionaire Is Owner Of Wai Wai Noodle BrandApril 28, 2017
- Ranking billionaires: China adds girth to the world’s richestApril 28, 2017
- What sets self-made billionaires apart – The Globe and MailApril 28, 2017
- Jeff Bezos’ wealth crosses $80 billion markApril 28, 2017
- Buffett, Guinness-Records Mogul Get Caught in Canada-U.S. Coal FightApril 27, 2017
- Amazon crushed its earningsApril 27, 2017
- Nasdaq Breaks Through 6,000 Barrier, But Should We Party Like It’s 1999?April 27, 2017
- QSU Sector Scorecard for Q2 2017 – FidelityApril 27, 2017
- Reinvesting Dividends – FidelityApril 27, 2017
- Chinese Fugitive Guo Wengui Lost $500 Million In UBS Margin CallApril 26, 2017
- What it’s Really Like to Ride the World’s Most Advanced Car ElevatorApril 26, 2017
- The 1 Book Bill Gates and Warren Buffett Say You Should Read to SucceedApril 26, 2017
- The Trump and Trudeau offices released 2 very different readouts of a tense-sounding call amid a mounting trade disputeApril 26, 2017
- Should you take a lump sum or annuity for retirement?April 26, 2017
- New research shows how differently male and female execs see gender in the boardroomApril 26, 2017
- Chinese stocks are experiencing the mother of all dead cat bouncesApril 26, 2017
- Here’s how much a Trump tax-plan letdown could whack the stock marketApril 26, 2017
- The Cheap Energy Revolution Is Here, and Coal Won’t Cut ItApril 26, 2017
- World’s Top Money Manager Sees Nothing to Like in Canada StocksApril 26, 2017
- Canada Is Confident U.S. Will Lose Lumber Dispute, Freeland SaysApril 26, 2017
- Here’s the oldest business in every stateApril 25, 2017
- Derek Jeter and Jeb Bush group have reportedly reached an agreement to purchase the Miami Marlins for $1.3 billionApril 25, 2017
- Trump is taking aim at one of America’s closest allies — and he has bipartisan backingApril 25, 2017
- Warren Buffett Lost Nearly $1 Billion On His IBM Investment Earlier This WeekApril 25, 2017
- LVMH Shares Top Paris Market After Christian Dior Buyout DealApril 25, 2017
- Embrace the Caribbean Lifestyle by Buying a Beach House on AnguillaApril 24, 2017
- Indonesia’s Exotic New Private-Island ResortApril 24, 2017
- Experience Rosé Like Never Before with This New Riedel Wine GlassApril 24, 2017
- Remember When Alec Baldwin Starred In Capital One Ads? He Donated All Of That Money To CharityApril 24, 2017
- Buffett’s Foundation Donating $90 Million Supporting Women Of ColorApril 24, 2017
- Australian Toy Maker Born In A Refugee Camp Becomes BillionaireApril 24, 2017
Lugen Family Office Proudly Supports AIP
The International Association of Advisors in Philanthropy is the leading charitable giving organization in the world for inspiring collaboration among professionals.
AIP Ambassador, Past President
LFO Website Statistics