Great partnerships are based on aligned interests and accepted rules for managing conflict. The legal documents (by-laws, shareholder agreement, operating agreement) that govern the relationship among owners of a business are critical, yet the best relationships often enable those documents to stay in the drawer when a disagreement among owners occurs. Read more in Governance Systems Should Anticipate and Resolve Business Ownership Conflicts by Bruce Werner.
You are a business owner. Your business has a line of credit with a bank and you get along well with your relationship manager, which has been pretty easy because your business has never missed a payment and has never been out of covenant. But one day, your largest customer goes to a competitor. Suddenly, you have a significant cash flow issue. In fact, you’re about to breach multiple loan covenants, and a payment default is also foreseeable. Then, your relationship manager calls. What should you do? Michael Fixler’s Managing Your Relationship with Your Business Lender in Times of Crisis will provide some guidance.
If you are like the above business owner and it turns out that your business is in really dire straits or that your lender is more aggressive than you would like, then you need to understand your legal options to try to save what you can. You may know something about business bankruptcy, but probably not much. You may also hear about some other options that your lender or most business attorneys might suggest. But the one option you need to know about is a new kind of bankruptcy: Subchapter V of chapter 11. It’s chapter 11, but better and cheaper.
Bloomberg Businessweek’s October 21st article, The Hidden Ways the Ultrarich Pass Wealth to Their Heirs Tax-Free, is worth a read. In it, Ben Steverman, Anders Melin, and Devon Pendleton explain how Nike founder Phil Knight used sophisticated legal techniques to avoid paying literally billions of dollars of taxes on gifts made to his family. Be sure to read the online version, by the way, because it includes some fun little cartoons. As the article makes clear, Knight is not an outlier. And the good news (depending on your perspective, of course) is that you don’t need to be a billionaire to do this. To learn more, or to ask your tax lawyer or accountant to think more creatively, read Multi-Generational Tax Strategy for High Net Worth Families by Gerry Nowotny.
This webinar will discuss the numerous considerations to ensure the correct entity is chosen for your new company, such as tax implications, personal liability, how to maintain control of the business, rules regarding capital raising, and your fiduciary duties.
“Queen remains the 38th biggest artist on Spotify today, with over 37.6 million monthly listeners. That’s more than Kanye West (35.8m), Beyoncé (32.6m), The Beatles (24.3m), and Jay-Z (21.6m).” That’s from this article on Music Business Worldwide, in an article by Tim Ingham. It is a great read for finance professionals, alternative asset managers and investors, and music fans alike.
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