A few weeks have passed since the beginning of the New Year, and we suggest that it is time to check-in on your family business’ New Year’s resolutions. One resolution that should be on every family business’ list in 2019 is...more
The three-circle family business model was introduced in 1978 by Renato Tagiuri and John Davis at Harvard Business School. The model represents three categories of individuals within a family business and the seven interest...more
Most advisors recommend that a family business have and use a board of directors. In fact, the majority of closely-held corporations are formed with boards of directors, but those boards frequently consist of only a single...more
It is not uncommon these days to see family-owned businesses with two classes of stock. Typically, one class has both voting and economic rights; the other class has only economic rights. With this structure, a couple of...more
Family-owned businesses continue to dominate our economy, but they also continue to struggle with issues of succession. SCORE, a nationwide non-profit organization that provides business mentoring, just completed a survey to...more
A thoughtful shareholders’ agreement can be one of the most valuable tools a family business has. It can serve several purposes. A few of the easy ones are:
Restrictions on Transfer. A shareholders’ agreement—or similar...more
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...more
Simple estate planning is pretty straightforward. There is usually a Last Will and Testament, Power of Attorney, Health Care Directive, and Trust if necessary. But there is a niche practice within estate planning ripe with...more
Every article, paper, memo, or advisory about family business succession touches on some common themes. Plan early. Communicate well. Document the process. Gauge the true interest and ability of the next generation.
A few...more
Bill Marriott Jr. sat down for an interview recently with family business consultant Andrew Keyt and the Wall Street Journal’s Kate Linebaugh. The real impulse for the article was Mr. Marriott’s decision to reach outside the...more
PwC, one of the “Big Four” accounting firms and a consulting titan, released its latest periodic survey of United States family businesses. PwC performs this survey every two years and has been doing it for ten years now. ...more
The latest from the Harvard Business Review’s ongoing inquiry into family businesses has yielded a surprising result. Research recently published in the Academy of Management Journal indicates that family businesses actually...more
You may have thought the big story for Friday, January 20, 2017 was the inauguration of our forty-fifth president. But for those of us in the family business community in the Pacific Northwest, the Puget Sound Business...more
Many family offices and established family businesses have a great deal invested in real estate. For some, these are active investments involving development, construction and sale. For others, these are either residential...more
Almost by definition, a family-owned business consists of multiple generations of owners and operators. The different generations may have different visions for the business, but they are usually all aligned on wanting what...more
Almost by definition, a family-owned business consists of multiple generations of owners and operators. The different generations may have different visions for the business, but they are usually all aligned on wanting what...more
The National Association of Corporate Directors (NACD) recently released its 2015-2016 NACD Private Company Governance Survey. In an article in the March 2016 edition of “Private Company Director” – a monthly publication...more
Each year, our colleagues at the Pacific Family Business Institute (PFBI) conduct a survey of approximately two hundred family business leaders in the Pacific Northwest. They ask about topics such as growth, succession...more
In September, Gary Locke, former U.S. Ambassador to China, Secretary of Commerce and two-term Governor of the State of Washington, returned to Davis Wright Tremaine as a Senior Advisor. Ambassador Locke’s return sparked a...more
Embracing change is tough, because it rarely hugs you back. But the recent changes to the Washington State LLC Act (RCW Chapter 25.15) at least have some provisions that are affectionate toward family businesses and LLCs in...more
In late 2012, researchers Nicolas Kachaner, George Stalk and Alain Bloch at the Harvard Business School published a study to compare family-owned businesses of certain sizes and industries with their non-family-owned...more
In reading Andrew Keyt’s piece about family businesses (recently published on FoxNews.com), “structure” was the one word that continued to resonate for me. Mr. Keyt never used the word “structure” but his advice to family...more
Every business is different. Certainly, every family is different. But family businesses, as a group, share certain challenges and opportunities. In order to ensure their businesses survive, thrive and grow, leaders of family...more
First and second generation family business owners spend an inordinate amount of time focused on building and preserving their family legacy. This is hard, hard work. For starters, it means not only growing the business and...more
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...more