cs1 Sonny is a dedicated, key employee. Though he only owns 20% of the stock in the business, he has always shared in decisions equally. The owner, Fred, has often said the company would never have grown so fast without Sonny as manager. This morning, Fred pulled Sonny aside and said he was getting out of the business in 5 years. His 27-year-old son, who has only worked in the business since finishing college, would be moved into the main office and groomed for the presidency. Sonny gave the business 20 years and thinks he deserves more. He feels betrayed and angry. THE MOST IMPORTANT BUSINESS DECISION YOU WILL EVER MAKE IS WHEN YOU SELL OR TRANSFER YOUR BUSINESS. If you’re like most entrepreneurs, your business represents most of your personal wealth-and most of the years of your life. Whether you sell it outright, transfer it within the family or to key employees, you are faced with many soul searching decisions. CFG specializes in business planning to help you through the process you are about to begin.
CFG Business Solutions
Family Business Succession & Wealth Governance Life Insurance Solutions
CFG Business Solutions

Governance - White Papers

Make new balance sheet to examine human assets
by Mike Cohn in Phoenix Business Journal

You've built a successful company and have decided to help out family members by employing them in the business. What could be better than having trusted family members working together? more

Reality check needed to avoid pitfalls in hiring family
by Mike Cohn in Phoenix Business Journal

Sometimes family members who have been recruited to join the business can be groomed for the role of president. What could be better than a son or daughter taking over? But before the dream disappears into a cloud of disappointment, do a reality check. more

Does your company put family or business first?
by Mike Cohn in Phoenix Business Journal

Family businesses are known for their generosity with family members: offering jobs, fast track advancement, understanding and supporting family members with special needs or problems. But family businesses also have a dark side: when family jealousies and arguments overshadow good business decisions. more

Fairness and Openness in Shareholder Representation
 by Mike Cohn in TRANSITIONS & traditions

Ask most family businesses about "governance" and a typical answer is having an active board of directors to oversee the affairs of the business. But there is a big gap between knowing what a board does and having an effective one that represents shareholders—especially when there are shareholders not active in senior management roles. more

The Three Words of Corporate Governance
by Matt Donovan in TRANSITIONS & traditions

Quick—think of three words relating to corporate governance. How about shareholder, director and officer? Good choices. Virtually everyone can give some sort of definition for each of these words. Fewer, however, can explain the differences between them, or how they relate to one another. more

Are you ready for 'outsiders'?
by Mike Cohn in Family Business magazine

Small and mid-size companies are beginning to realize that having “outsiders” on their board of directors can provide intellectual resources to the family business that, more than ever, needs to compete in a complex, global marketplace. more

Avoiding scandal: Good intentions won’t do it
What’s ethical? In a family business, it isn’t always easy to tell
by Mike Cohn in Family Business magazine

Most of us are aware of the well-reported scandals at Enron, WorldCom, Tyco International, Global Crossing and Adelphia. But what about all those daily unreported ethical or judgmental lapses that slip beneath the media’s radar? more

Siblings and cousins must confront governance challenges
by Mike Cohn in TRANSITIONS & traditions

First and second generation family businesses often transfer ownership from parent to child in a vertical succession. Those who work in the business often become the next generation owners; those not "in" the business may be excluded from ownership. more

 

 Life Insurance Solutions
Case Study 1