Do you have any idea of how much of your family’s worth is invested in your family business? What about other assets which have a meaningful value? Here in Vancouver (Canada), I have seen the net worth of families grow exponentially because of our long and significant increase in real estate values. This increase has […]
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Do you hold digital assets? Time to get organized as these can be lost in cyberspace. A @NYTIMES article here, Cryptocurrencies lost article. Also, hiding cash under the mattress may also not be the safest way to keep your wealth safe, https://www.nytimes.com/2024/06/08/business/cash-at-home-retirement.html The value being accumulated in these cyberassets has been increasing and becoming more complicated. […]
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How does your company determine its dividend policy for its owners? Or as many companies do, the decisions on dividends are often made on an ad hoc basis. As a company becomes more mature with a regularity of earnings, planning for dividends both to set and meet shareholders’ expectations is part of a succession plan’s communication strategy.
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What happens or what can be done in the situation where a child who is now an owner of shares of a company has a problem. These problems could include divorce, death or the fact that you do not want that child to be an owner any longer, for whatever reason, of the company.
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The value of your business only becomes relevant when you either wish to sell it or when you pass away. Whether you live in the US with its estate tax or in Canada with its deemed capital gains tax, your heirs will likely pay some taxes upon your passing.
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My weekly perspective… This is often a question that business owners sometimes overlook. A shareholders’ agreement is a necessary tool for all companies, in my honest opinion. Why?
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Ah tax time – are we all having fun with less than 2 weeks to the April 30 deadline? Some are having a few surprises with the various government payments that were made during this pandemic and are now facing an unexpected tax bill. So let’s think about strategies for 2021 that may help to […]
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One conundrum facing many family businesses, is to determine, if and how much to support non-core business investments with cash from the business. Often this issue arises in the 2nd generation of a business when the children, may not want to actively participate in the actual business. Many parents indulge their children and will support […]
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What and why? I am not a lawyer and would first recommend that you seek legal advice to ensure that this document is properly drafted and sets in place the powers and restrictions that meets your wishes. A power of attorney is a document providing powers generally that you hold relating to financial decisions and […]
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Dividends are intended to provide a return to shareholders of the family business. Paying dividends may not necessarily be financially motivated because the internal rate of return on funds reinvested in the business may make the capital allocation of paying dividends fiscally inefficient. This means that the business could reinvest these funds at a better […]
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How are the returns on your investments? Much like stocks and bonds, the investment in your business, should also be providing to you a return. How do you measure this? Do you have too much equity/sweat/emotions tied up in your business? Some comments from an article about diversification of risk and investment in a business. […]
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