Exiting: In a Family Way

Exiting: In a Family Way
by Barbara Manzi

In 1991, when I was laying the foundation for the company that would become my metals distributorship, Manzi Metals, Inc., I was making my routine cold calls when I reached a buyer for a local company that gathered raw materials used in computer circuit boards.

The buyer just happened to be my son Louis’ supervisor, and he confided that he was planning to groom Louis to become an assistant buyer, having found him to be a diligent and intelligent worker. At that moment, a light bulb went off in my head: “Bingo!” I thought.

I was looking for a sales person myself – to learn the metals business – and who better than my son? Louis was 22 at the time, just out of a four-year stint in the Navy, newly married, and chafing under the restraints of a salary that didn’t go far enough to support the needs of a young family. More…

Heir Conditioning:Should Your Children Get The Family Business, or What It’s Worth?

Heir Conditioning:Should Your Children Get
The Family Business, or What It’s Worth?

by Michael P. Kirby

For an owner of a closely held business, few questions cause as much soul-searching as the issue of whether to leave your children the company…or the company’s value.

This may sound like a rational business decision, but it’s not.It’s a choice that can pit your head against your heart, your love for your business against your love for your kids, and your hopes and dreams against cold hard reality.

Not long ago, a business owner in another state asked Banc One Capital to advise him on the ramifications of valuing his company for estate planning purposes.Mr. Lincoln (not his real name) was proud that his two children were both actively involved in the manufacturing business he had founded.However, when his son, the president, had a falling-out with his daughter, the executive VP, it was all he could do to keep their dispute from affecting company operations. More…