Aaron
Moyer, Consultant
SKM Associates LLC
You’ve worked hard to create a strong,
sustainable business. You’ve been
successful in building a profitable business. But, beyond building a successful company, you want to build
a legacy for your family. Perhaps
that means preparing for the next generation to take over the company. Perhaps that means liquidating the
company and using the wealth for other family legacy purposes. Or, perhaps you have other goals in
mind. Whatever the case, it takes
careful planning to make it happen.
Consider Joe Robbie, a cofounder of the Miami
Dolphins. Following Mr. Robbie’s
death in 1990, a feud broke out among his children and surviving wife regarding
the team and the family’s continued ownership. Lawsuits were filed; claims of dishonesty were made among
his children; and the family fought bitterly. Mr. Robbie’s estate was reportedly worth $109 million at the
time of his death. As a result of
poor planning, his estate reportedly had to pay taxes of approximately $47
million. Additional money was
required for certain debts, litigation costs, and other expenses. The family was ultimately forced to
sell the team and the stadium. In
the end, each of his children received about $6 million. The judge overseeing the estate hearing
concluded, “As much as Mr. Robbie produced for his children, I’m sure he is
turning in his grave. I’m sure
this is the last thing Mr. Robbie wanted to see.” Mr. Robbie’s oldest son seemed to concur: “This whole thing
has destroyed our family.”
The key to building your family legacy is through integrated
planning. Many business families
neglect this piece as they are focused on the daily challenges of the
business. This includes, among
other things, leadership succession planning, appropriate estate planning,
appropriate corporate structures and documentation, coordinated financial
planning (both business and personal), and communication among
stakeholders.
This type of succession planning is a process,
not an event. It also takes
coordination among outside experts to ensure that they family’s ultimate goals
and desires are being put in place as part of the family’s greater overall
plan. As family business advisors,
SKM Associates understands the family dynamics as well as the business issues
involved.
Your family’s legacy doesn’t have to end like
Mr. Robbie’s. As your business
family engages this process of succession planning and building the family
legacy, SKM Associates can walk along side you. We understand the questions to ask. We appreciate the sensitivity of the
issues and conversations. We work
with the lawyers, accountants, and other subject matter experts who are needed
in this process. In short, we can
help you plan and coordinate this process so that you can focus on continuing
to build your business family legacy.
Give us a call today. We
want to learn about your family and talk about ways we might be able to help.
SKM Associates LLC
215.256.5997
skmoyer@comcast.net
