The economy is relatively healthy, but history has taught us that growth cycles don’t last forever. It’s not if there will be an economic downturn—it’s when. Knowing that there’s a cyclical pattern to many markets, savvy owners and executives figure out how to take advantage of business cycles to create a continuing growth trajectory and boost profitability. From that strategic planning point, five action items are critical to middle-market companies for maximizing growth, profitability, and value—in any economy.
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Strategy is a crucial area of focus, but one area that’s often overlooked is planning for an unforeseen event. For example, what would happen to your business—and your family—in the event of your premature death or disability? How can you ensure a successful ownership transition and protect your family in the event of such an occurrence? One way is to have a buy-sell agreement in place.
Enterprising families are showing an increased interest in participating in direct investments around the globe. Some families have turned to private equity out of frustration with the volatility in the public markets and the unexpected correlations between asset classes that occurred during the 2008-2010 timeframe. The factors that impact their private equity portfolios’ success are complex in nature, and there are 15 key considerations that inform families’ preferences for private investments, and, ultimately, impact how well they will do.
The Internet of Things (IoT) connects machines and devices to one another. Today’s devices have between 6 to 9 sensors capturing and transmitting data to help all industries become more efficient, productive and safer. The 2020 annual global economic potential across all sectors is estimated up to $14.4 trillion—that is the current GDP of the European Union. For businesses to fully realize the great potential of the Internet of Things (IoT), they will need to be prepared for the privacy, cybersecurity and liability risks that lie ahead.
With people, assets, and services becoming increasingly connected by software and hardware—the Internet of Things (IoT)—physical risks are now directly intertwined with digital risks. Will errors made by artificial intelligence be treated more like products liability or vicarious liability? Since IoT is so new, there is no definitive legal reference of concise volume of regulation on the topic.
Single family offices are increasingly faced with the topic of succession whether triggered by an upcoming departure of a family office executive or a broader transition in generational family leadership.
Giving up company ownership can be the largest and most important step in a business owner’s career and many successful entrepreneurs are not well prepared to take it. In this break-out, the panel will delve into former business owners’ journeys, providing insights and strategies for the challenges business owners face when deciding what the next step is for their business, whether that means selling the company or transferring it to the next generation. This panel will feature the recently released Columbia Business School and U.S.
The new revenue recognition standard—set to go into effect in 2018 for public entities and 2019 for nonpublic entities—has been and continues to be a hot topic during our conversations with clients. Unlike most other accounting changes, the new standard will influence organizations not just at the financial-statement level, but also at the operational level. Although the deadline for implementation is a year or two away, organizations have already reached a fork in the road: they must decide whether to engage in proactive planning now, or face risky consequences later.
Recently proposed IRS changes to reduce or eliminate valuation discounts could dramatically increase the transfer tax cost of shifting property to members of your family in the future. The loss of valuation discounts is of significant concern for high-net-worth individuals for whom federal transfer taxes are an issue. It’s possible that some of the regulations could become effective as early as December of 2016, so it’s important to consult with your tax and legal advisors to evaluate your planning options.
Selling a business can be a long and complicated process. One of the more strenuous and time-consuming aspects of selling a business is the due diligence process. Assisting with a buyer’s due diligence can take a significant amount of resources of your family office or employees of the business. Accordingly, if you plan on selling a business in a few years, one of the next steps should be to conduct pre-sale due diligence.