The Group Throne

The Group ThroneUMass

by Ira Bryck

Two brothers listened intently to the compelling words of their dear, departing father. “You both worked very hard in our family business. You did your jobs well and you each struggled to show me how you could lead this company one day. Sorry, but I just couldn’t pick one of you above the other. Finally, I’ve made my decision. I want you to both be presidents…Co- Presidents. But listen up: if and when you can’t agree, when you’re in absolute deadlock, call my brother Michael in California. I know you never liked him, but he’s a smart guy. He’ll listen to both sides, and then decide. More…

Family Businesses Are Built To Last

Family Businesses Are Built To Last

by Richard L. Narva, Esq.

Some family businesses are built to last.Many are not.In my view there are two clear indicators of whether a family business is built to last:its balance sheet and its vision statement.My experience tells me that when the balance sheet of a family business is relatively unleveraged because the owners reinvest the bulk of their profits consistently each year, they are voting with their dollars to build a family business that will endure.I do not question the choice of business owning families who choose to maximize withdrawals of cash for personal consumption.I simply argue that their companies are built to serve the current generation of owner/managers–a legitimate choice, but one which is inconsistent with an enduring family controlled business enterprise. More…