When Patient Capital Grows Impatient

When Patient Capital Grows Impatient

Recaps” are Becoming more Popular as a Way to Satisfy the Diverging Needs and

Priorities of Shareholders
by François M. de Visscher

The Windham Co., a third-generation manufacturing company, had not surveyed its shareholders to evaluate their liquidity and capital needs in more than 20 years. The company had very effective shareholder information and communication programs. But when the 35 shareholders were interviewed in a recent survey, the leaders were surprised by the results. The composition of the shareholder base had changed. The estate and financial objectives of the shareholders had become quite diverse. The “patient capital” of this company had been well maintained through two generational transitions but was getting impatient. More…

Minority Shareholders

Minority Shareholders

by Craig E. Aronoff, Ph.D.
Co-Founder and Principle of the Family Business Consulting Group

“I’m a minority shareholder in a family business,”the phone call began.”I’m hoping to start a national association of people in situations like mine.”

“We could learn more about our rights,”she continued.”We could organize and try to pass laws more favorable to minority shareholders.We might even organize a market for trading our shares.”

The caller wanted my help.”Why do I think your association is designed for dissident minority shareholders?”I asked.”What has upset you enough to want to organize?” More…