12: Amy Wirtz & Why Valuation Metrics Matter to Family Businesses
Find out all about generational transfers, valuation metrics for family business, and so much more on this week’s Build Value By Choice. Host Nana Bonsu of Infinite Horizons is joined by Amy Wirtz, consultant with The Family Business Consulting Group, specializing in shareholder value enhancement. Hear all about the work Amy does and her advice for exit planning in your business.
get your free valuation with Nana here https://bit.ly/get-free-valuation
KEY TAKEAWAYS
Family businesses only have a 30% success rate through the second generation, 12% through the third generation, and 3% through the fourth generation and beyond.
You need a true valuation of your business even if you’re just passing it along to the next generation due to tax laws.
Most of the families Amy works with don’t know that your valuation formula or metric can be different for different reason.
You should make sure that the valuation of your business and the next steps for the business aren’t a surprise to your family in the event of an unexpected death. You should make these things readily available to your family, updating them as and when.
CEOs are often not getting advice before they go to board meetings and get grilled on why they’re not getting the expected ROI.
Some of the most successful family businesses change what they do. The world changes so your business must be able to do that too.
BEST MOMENTS
‘The issues of sweat equity and taxation drive how we define how we’re going to value a business’
‘Waiting until after your dead until after you’re dead for your family to find out what happens to your business is cowards’
‘Good shareholder stewardship must involve knowledge of value’
‘We no longer count liquidity as failure’
EPISODE RESOURCES
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Buy-Sell Agreements for Closely Held and Family Business Owners by Z. Christopher Mercer
Getting Things Done by Dave Allen
Wirtz@thefbcg.com
ABOUT THE GUEST
Amy Wirtz is a consultant with The Family Business Consulting Group specializing in shareholder value enhancement, business planning processes, and transition implementation of management, leadership or ownership of a business. Her passion stems from growing up in her grandparents’ second-generation business, surrounded by the wonderfully complex matters a family business presents.
Amy brings a diverse range of experience to family enterprises by serving in various roles such as an exit-planning advisor, collaborative lawyer, mediator, arbitrator, lecturer, and teacher. While no longer practicing law, today Amy focuses on providing creative solutions to family business engagements and presenting to relevant audiences. She also helps business owners use their advisors as a resource team to create optimal value.
Amy serves on the Advisory Board for NewComer Farms located in Bryan, Ohio; M&D Farms located in Napolean, Moore Industries in Montpeliar, OH, and Neal’s Design in Cincinnati, OH. She frequently speaks on the topic of business succession at conferences including the Jellystone Symposium (2019,2018); Association of RV Parks and Campgrounds National Conference (2019, 2018, 2017, 2016); Carolina Association of RV Parks and Campgrounds Conference (2018, 2017); the Ohio Campground Association Conference (2018), and the Wisconsin Association of Campground Owners Conference (2018) expo. Other speaking engagements include Executive Women in Agriculture in November of 2017 and 2016, Top Producers Farm Journal 2017, and the Ohio State University Extension Woman in Agriculture Conference in March 2019 and 2015.
PODCAST DESCRIPTION
Hosted by Nana Bonsu of Infinite Horizons, this show aims to serve small business owners who want to grow their businesses while reducing their own personal involvement. We do this through a combination of interviews with industry leaders, and host presentations. We are a certified value builder advisors and leverage a statistically proven methodology to help clients such as you scale or transition their business to the next chapter.
We care for our listeners and see their dreams as our own. We aim to foster a community that embraces freedom, generosity, and integrity. This is a show by entrepreneurs and business owners for entrepreneurs and business owners.
ABOUT THE HOST
Nana Bonsu:
“I am an entrepreneur and ex-Corporate Executive who’s applying his experience and knowledge from working in various to pursue my passion of helping small business owners increase their choices in life by leveraging my knowledge and experience, their employees, systems and money. I help small business owners transform their business and increase value through action-oriented education and implementation of strategies and tactics to make their business sellable even if they are not planning on selling. Known for establishing an environment for personal growth and development. My multicultural background equips me with the intuitive understanding of different cultures and how they impact business owners.”
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