There are a multitude of ways to realize ownership transition–some simple, some complex, some a safe bet and some full of risks. For the ambitious, successful family-owned company that wants to make it to the big leagues, an initial public offering (IPO) as its succession planning tool, though unusual, may be worth consideration. (For a quick overv… Continue Reading
One way for business owners to transition their ownership to their employees and to receive liquidity for their shares is through the creation of an employee stock ownership plan (ESOP). According to the National Center for Employee Ownership, there are almost 7,000 ESOPs with roughly 14.1 million participants in the United States. The industries in whi… Continue Reading
We’ve all heard the chatter (or read about it in this blog). The owners of family businesses need to start thinking about their exit strategy. To put it in perspective, Robert Nason of John Molson School of Business reveals that “the retirement of baby boomer business owners will bring about the largest turnover of economic control in history. … In C… Continue Reading
On June 6, 2017, Davis Wright Tremaine LLP hosted the latest edition of our Family Business Study Group, where David Levine of Prudential Capital Group and Hugh Campbell of Cascadia Capital spoke about using mezzanine financing to create liquidity in family-owned business.
What is Mezzanine Financing?
Mezzanine financing is used to facilitate a vari… Continue Reading
On June 1, 2017, Davis Wright Tremaine LLP hosted its 5th annual Farm to Label Summit, bringing together food and beverage industry executives, investors, and entrepreneurs. The program included a series of interactive panel discussions focused on a variety of business topics infused with perspectives on diversity, resource stewardship, and econo… Continue Reading
DWT recently hosted “The 12 Most Common Mistakes to Avoid in Selling Your Business,” a seminar examining the common challenges affecting owners of family and closely held businesses on the subject of succession and estate planning. The seminar was led by a team of panelists, including DWT attorneys Keith Baldwin and Matt Loftin, Kristofer Gray with I… Continue Reading
We have represented hundreds of family businesses (as well as other privately-held businesses) in negotiating and completing successful mergers and acquisitions. We have seen important lessons learned by families selling their businesses. Over the course of the next few months, we will be discussing some of those lessons learned. In some cases… Continue Reading
- low interest rates,
- potential tax law changes,
- moves toward deregulation of business in a new administration,
- and economic strength within the family business market,
all predict a banner year for acquisitions in the middle market family business space, according to Christian Schiller, managing director of Casca… Continue Reading
In his recently published book, Perfect your Exit Strategy: Seven Steps to Maximum Value, Seattle investment banker Thomas Metz highlights what he sees as the top ten mistakes made by sellers of businesses. Family-owned businesses are not immune from these mistakes. We present a brief summary of the list with Mr. Metz’s permission:
- Confusing Pr
On June 1st, 2016, the Wall Street Journal published an interview with Mr. Keyt that highlights some very honest difficulties of succession planning for businesses.
Mr. Keyt answers questions on how Millennials could impact the future of America’s … Continue Reading
Recently, four veterans of family business sales shared their experiences with other families at a DWT Family Business Legacy Series Event in Seattle. Our panelists were Steve Gordon, CEO of Gordon Trucking (sold in 2013), Corry McFarland, CEO of McFarland Cascade (sold in 2012), S… Continue Reading
Let’s say…Eli Jordan founded Jordan Family Farms. He now runs the business and each of his three children, Chris, Megan and Mark own a minority interest. Chris decides he has other opportunities and wants to remove himself from the family business. To do so, he must sell his interest. What should Chris expect to receive for his interest?
On one l… Continue Reading
Let’s assume you are selling the family business. In order to get the best terms and price, you may not be able to negotiate the full purchase price in cash up front. More likely, some portion of the purchase price will be placed in escrow for a period of time to secure any potential post-closing claims a buyer might have. Also, some of the purchase price … Continue Reading
A family business does not go public. Going public and sharing ownership with the rest of the world is the opposite of what a family business is striving to do. … Continue Reading
Selling or transitioning a family business can be a daunting task – especially for those individuals trying to lead the process on behalf of their family. The challenges can result from the multiple owners and stake-holders of the business, the family dynamics that run through all conversations, and the greater or lesser psychological connection cert… Continue Reading
Our frequent partner in assisting family businesses, PriceWaterhouseCoopers, created a series – Realizing Shareholder Value: Private Company Exit Strategies – to help guide privately-held business owners in the development and execution of effective exit strategies. In this first installment of the series, the authors introduce some of the ba… Continue Reading
Family business owners all want a successful “exit,” but often fail to take timely action to ensure a successful transition. All too often, a lack of planning leads to less than desirable results, many times jeopardizing the continuation of the business. The comprehensive worksheet below is an excellent starting point for planning a successful exit… Continue Reading