Family wealth transition planning : advising families with small businesses

367 Pages·2009·1.92 MB·English

by  Bonnie Brown Hartley

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Praise for
Family Wealth Transition Planning
Advising Families with Small Businesses
by Bonnie Brown Hartley and Gwendolyn Griffi th
“Family Wealth Transition Planning provides an invaluable guide to fami­
lies as well as their advisers for ensuring the generational success of family
enterprises.”
Lee Hausner, PhD
President, First Foundation Advisers
“Bonnie Brown Hartley and Gwendolyn Griffith have created an indispens­
able guide for advisers to business families. But it is much more than that.
Family Wealth Transition Planning integrates the human and social ele­
ments with the financial, offering the reader a three-dimensional approach
to family wealth transition planning. Sound theoretical constructs are in­
terwoven with practical applications and case examples to provide elegant
solutions to the complex issues of business families in transition. This very
important contribution to the field transcends the numbers. It should be in
every adviser’s library!”
Jane Hilburt-Davis
President Emeritus, Family Firm Institute
President, Key Resources, LLC
“Family Wealth Transition Planning is a profound body of work. It gives
the insights required to navigate the challenging waters of sustaining family
legacies. It is rich in research, strong on process, and uses stories and case
studies to motivate families, their businesses, and advisors to successfully
engage in the most worthwhile journey of perpetrating family legacies. In
these unprecedented times, I’m thankful that Bonnie Brown Hartley and
Gwendolyn Griffith have contributed, once again, to the best practices of
families in business, and families of shared wealth.”
Dirk Jungé
Chairman and CEO, Pitcairn
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“If there was no generally accepted definition of success in family wealth
transition planning before this book, there certainly is now! This book is
both cogent and beautifully written. Anyone looking for a guide to help­
ing families with family wealth continuity, healthy relationships, steward­
ship, and legacy will find it in this pioneering work. Bonnie Brown Hartley
and Gwendolyn Griffith masterfully capture the psychology of individuals
transitioning within their family units. This insight makes Family Wealth
Transition Planning interesting as well as informative.”
Valerie Maxwell, PhD
Psychologist
President, Foundation for Learning Development
“Family Wealth Transition Planning is an invaluable road map for advisers
to families with small businesses. Bonnie Brown Hartley and Gwendolyn
Griffith have synthesized and organized the best thinking from many disci­
plines into a process that will enable advisers to business-owning families.
The authors address wealth transfer in all dimensions—both human capital
as well as financial capital. Their work brings clarity to the complex, mul­
tidiscipline world of family wealth advising. The three case studies effec­
tively illustrate the authors’ methodology and holistic approach to advising
business-owning families. This book can only help to improve the family
and adviser relationship and lead to measurable success for all.”
Kathryn M. McCarthy
Independent Adviser to Families and Family Offi ces
Former Managing Director, Rockefeller & Co., Inc.
“Bonnie Brown Hartley and Gwendolyn Griffith provide a methodology
that fully integrates the key factors and variables that professionals from
all disciplines who serve family business clients know to be fundamental. It
forges them into a coherent and adaptable method customized to the fam­
ily’s unique constellation of family dynamics, sources of wealth and their
capacity to grow their financial capital, human capital and social capital. It
clearly illustrates how the methodology is applied, guiding the adviser and
the client through the planning process when facing change in human lives,
business organizations and fi nancial structures.
Family Wealth Transition Planning is a powerful, long-awaited book that
should be incorporated into both undergraduate teaching and postgraduate
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professional development programs for those professionals who engage
with family business clients.”
Dr. Barbara Murray
Director, Family Business Solutions (UK)
Former Executive Director, Family Business Network
“Family Wealth Transition Planning is a must read for everyone advising a
family business and for everyone serving on a family business board. More
than 80 percent of businesses in America are family owned, yet nearly
95 percent of business schools do not teach family business management.
That means that most advisers have had to learn “on the job”—a frightening
proposition. By explaining financial capital in the context of social capital
and human capital, Bonnie Brown Hartley and Gwendolyn Griffi th capture
the complexity in family business that is at once the source of competitive
power and other times the cause for systemic failure. Weaving the stories
of three family businesses throughout the book allows the reader to under­
stand and apply the valuable lessons of family wealth transition planning
offered by this book. I recommend it to all the family business advisers with
whom I work.”
Robin Klemm, PhD
A.E. Coleman Chair in Family Business, Director,
Austin Family Business Program, Oregon State University
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Family Wealth

Transition

Planning

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Also available from
Bloomberg Press
Family
by James E. Hughes Jr.
Family Wealth—Keeping It in the Family
by James E. Hughes Jr.
Getting Started as a Financial Planner
by Jeffrey H. Rattiner
How to Value, Buy, or Sell a Financial-Advisory Practice
by Mark C. Tibergien and Owen Dahl
The Investment Think Tank
edited by Harold Evensky and Deena B. Katz
Managing Concentrated Stock Wealth
by Tim Kochis
Money Well Spent
by Paul Brest and Hal Harvey
Practice Made Perfect
by Mark C. Tibergien and Rebecca Pomering
Retirement Income Redesigned
edited by Harold Evensky and Deena B. Katz
———

A complete list of our titles is available at

www.bloomberg.com/books
Attention Corporations
This book is available for bulk purchase at special discount. Special editions
or chapter reprints can also be customized to specifications. For informa­
tion, please e-mail Bloomberg Press, [email protected], Attention:
Director of Special Markets, or phone [phone].
00_Hartley_fm-jak.indd vi 7/9/09 10:43:26 AM
Family Wealth

Transition

Planning

Advising Families

with Small Businesses

Bonnie Brown Hartley
and
Gwendolyn Griffith
James E. Hughes Jr.

With a Foreword by
BLOOMBERG PRESS

NEW YORK

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© 2009 by Cultivating Change LLC and Gwendolyn Griffith. All rights reserved. Pro­
tected under the Berne Convention. Printed in the United States of America. No part
of this book may be reproduced, stored in a retrieval system, or transmitted, in any form
or by any means, electronic, mechanical, photocopying, recording, or otherwise, with­
out the prior written permission of the publisher except in the case of brief quotations
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This publication contains the authors’ opinions and is designed to provide accurate and
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First edition published 2009
1 3 5 7 9 10 8 6 4 2
Library of Congress Cataloging-in-Publication Data
Hartley, Bonnie Brown.
Family wealth transition planning : advising families with small businesses / Bonnie Brown
Hartley and Gwendolyn Griffith ; with a foreword by James E. Hughes Jr. — 1st ed.
p. cm.
Includes bibliographical references and index.
Summary: “In Family Wealth Transition Planning, Hartley and Griffith guide advisers to
families with small businesses through the intricate process of preparing and transferring
wealth to heirs. The authors take a holistic view of transition planning, focusing on assets that
fall under the umbrella of financial capital, as well as other undervalued sources of wealth:
human and social capital”—Provided by publisher.
ISBN 978-1-57660-335-2 (alk. paper)
1. Family-owned business enterprises. I. Lieuallen, Gwendolyn Griffith. II. Title.

HD62.25.H37 2009

658.1'6—dc22

2009015807
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