Best Practices for Positive Shareholder Engagement in Family Businesses with Travis Harms

Have you ever wondered how to balance the needs and expectations of different generations in a family business? In this episode, Travis Harms discusses ways to promote positivity within shareholder communities of family businesses while highlighting the importance of communication. He delves into the challenges of managing multi-generational family businesses with different shareholder clientele and their expectations regarding cash flow and capital appreciation. Travis highlights the importance of having the right people in leadership positions and working with an attorney and a valuation professional to ensure that buy-sell agreements are understood. Listen and enjoy!

Travis Harms leads Mercer Capital's Family Business Advisory Services practice, helping multi-generation family businesses with their valuation, strategic corporate finance, and shareholder education needs.

[00:01 - 06:32] Opening Segment

• Travis introduces Mercer Capital's

• Helping families and business owners with evaluation and advisory services

• Family businesses should focus on engaging and relating to shareholders more intentionally

• Best practices for positive shareholder engagement

[06:33 - 13:54] Navigating Multi-Generational Shareholder Needs in Family Businesses

• Multi-generational family businesses face unique challenges with different shareholder clientele

• Balancing the needs of different generations and keeping them informed is crucial

• Limited liquidity can be a challenge for family businesses, but illiquidity can also be the source of outsized returns

[13:55 - 20:59] The Challenges of Diversification and Leadership Transitions in Family Offices

• People turn to esoteric asset classes they know nothing about for diversification

• Transitioning leadership is a challenge for families without the right professionals and skill sets

• Realistic assessment of needed skill sets is crucial for a successful leadership transition

[21:00 - 28:51] The Importance of Buy-Sell Agreements in Family Businesses

• The importance of having the right person in a leadership position

• How to remove the stigma around owning shares in the family business

• It's vital to involve an attorney and valuation professional in creating a buy-sell agreement

• The need for clear understanding among all parties involved in a buy-sell agreement

[28:52 - 37:45] Closing Segment

• A consistent view of the value under the buy-sell agreement is important

• Families should formalize a process for evaluating a full-on liquidity event or acquisition

Want to connect with Travis? Follow him on LinkedIn. Visit Mercer Capital to explore more about the family businesses! 

Key Quotes:

"If anything, family businesses should be more focused on engaging and relating to shareholders than public companies are." - Travis Harms

"Return follows risk in investing." - Travis Harms

Download our FREE Strategizing for Inflation Guide here: https://www.excelsiorgp.com/download/

Connect with me on LinkedIn!

LIKE, SUBSCRIBE, AND LEAVE US A REVIEW on Apple Podcasts, Spotify, Google Podcasts, or whatever platform you listen on. Thank you for tuning in, and Stay Tuned for the Next Episode COMING SOON!

Hosted on Acast. See acast.com/privacy for more information.