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JAN/FEB 2023
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How to Survive the ‘Silver Tsunami’ 2023 — TAKE ACTION NOW! BE INSPIRED TO IMPLEMENT A BUSINESS SUCCESSION PLAN
How can you/your clients survive the tsunami? The answer is simple: Start planning! As Benjamin Franklin once said, “By failing to prepare, you are preparing to fail.” The new year just started, so if you are a business owner or a professional advisor to entrepreneurs, this is the perfect opportunity to begin the succession planning process and ensure a successful transition. Succession planning is not a one-size-fits-all process. There are several paths business owners can take to protect their companies from chaos and failure, including: • Selling to a financial buyer, private equity group, strategic purchaser, or other outside entity. • Selling or transferring ownership to a family member or management. • Selling to employees through an employee stock ownership plan (ESOP). • Combining several of these options (e.g., a family transition with ESOPs). You can learn more about which option might be right for you or your clients on Page 2 of this newsletter. Whichever route you choose, it is vital that you and your clients have a plan in place before you retire — or worse, become ill or pass away. A new year is a new opportunity to plan ahead, and with the silver tsunami on the horizon, I hope you will embrace it! Our team is here to help you with any succession planning you or your clients need. In the meantime, remember one of my favorite quotes: “It pays to plan ahead. It was not raining when Noah built the ark.” – Brian Eagle
Did you know that baby boomers — people aged 58–76 — own 10 million businesses nationwide? That is a pretty amazing number, but it is also a concerning one. Now that boomers are approaching retirement, financial planners have warned that the “silver tsunami” on the horizon could be a disaster. What is the silver tsunami? Over the next 10 years, analysts predict that 2.5 million baby boomer business owners will begin transferring ownership of their companies. This wave of handoffs will be the single largest transfer of business ownership in history! (Whether the “silver” bit of the name refers to money or the business owners’ hair is up to you.)
Why should you be concerned?
I hope the silver tsunami goes off
“It pays to plan ahead. It was not raining when Noah built the ark.”
without a hitch, but unfortunately, I think it will be a rough
transition for millions of families and companies. I believe this for one main reason: Thousands of CEO owners will probably retire, pass away, or try to transfer ownership of their companies without planning first. To see how disastrous this path can be, one only has to look at the case of the pop star Prince. Prince passed away in 2016 at the young age of 57. His estate was worth $156 million — and because he died without a will or any other type of legal planning, his family went to war over his fortune. It was a mess! Prince’s siblings, half-siblings, and ex-wives all wanted a share of his business empire. In the end, it took six years of fighting and probate hearings to resolve the issue and parcel out Prince’s estate for good. Do you want that to happen to the businesses you care about?
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VIDEO GAMES FOR GROWING MINDS
They’re Not Just for Entertainment
Video games spark creativity. It’s essential that children have a creative outlet to focus on as they grow up. While some kids get this from writing stories or drawing, others can showcase their creativity and grow their skills by playing video games. Take “Minecraft” for example. “Minecraft” gives kids an opportunity to create their own world. They can build castles, create roller coasters, and do just about anything they put their mind to, thus enhancing their creative skills. Kids can improve relationship-building and leadership skills. Some games require kids to play on teams. Consequently, they can make new friends and bond over similar interests. Additionally, when kids play together, they have a chance to practice their leadership skills and lead their team to victory. Sports games and massively multiplayer online role-playing games (MMORPG) like “World of Warcraft” are great for teaching these skills. Be cautious if your kid is playing online with others, though. There’s no telling whom they’re playing with, so make sure they’re an appropriate age before introducing online multiplayer games.
Video games often get a bad rap. Many view them as time-wasters with nothing beneficial to offer, but that couldn’t be further from the truth. Many benefits can be gained from playing video games, especially for children. Although positives exist, pay attention to what you buy or rent for kids, as benefits vary depending on the type and age appropriateness of the games. Also, limit the time your kids spend playing video games, as too much screen time can be detrimental to their behavior and attention span. The American Academy of Pediatrics suggests allotting 30–60 minutes daily on school days and two hours or less on non-school days. If they stay within this range, you’ll quickly notice your children gaining some of the following benefits from playing video games. They learn how to problem-solve. Most video games feature puzzles and situations that require critical thinking to overcome. Players must often try different approaches to solve a puzzle before moving on to the next part of their game. They’re learning how to make their own decisions to accomplish goals. “The Legend of Zelda” games excel in this area.
6 QUESTIONS EVERY BUSINESS OWNER MUST CONSIDER How to Pick the Right Succession Plan
If you are a business owner or work with entrepreneurs regularly, you probably understand the phrase “my business is my baby.” When you feel fully invested in a company, it can be hard to even think about succession planning and letting your business “grow up.” However, just as children must learn to succeed without their parents, businesses must prepare for the day their owners retire! When you feel ready to plan for the future — or help your clients do so — consider these six questions as a starting point. (In these questions, “you” refers to the business owner.) 1. Are you healthy, active, and excited to keep working, or are you planning to retire soon? 2. Would you rather step away from the company completely or stay involved for the next 5–10 years on a progressively smaller scale? 3. Do you want to transition your company to family or employees, or would you rather sell it to an outsider? 4. If you want to pass your company to your family, do you have at least one child or relative interested in stepping into your role? 5. Do you need to diversify your personal financial statement, or would you be content without extra liquidity? 6. Do you view your company as simply a job, or as a legacy you can hand down to your employees and community?
These are just a few of the questions our team here at Eagle & Fein asks business owners while assessing their succession planning needs. By asking these questions and others, we can determine whether a given business owner would benefit from
passing their business on to family through an estate plan, passing it to family via a sale, selling it to an outsider, or launching a full or partial employer stock ownership plan (ESOP), among other options. Considering these questions will give you a head start on the succession planning process. Then, you or one of your clients will be inspired to plan for a successful business transition.
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WITH FOCUS AND SUPPORT! Another Chance to Get It Right
COCOA FLEECE FROST GLOVES HIBERNATION IGLOO LAYERS PENGUIN SCARF SLEDDING TRADITION WONDERLAND
New Year’s resolutions and goals seem to be on everyone’s radar, but they cannot be achieved without action! Resolutions tend to get a bad rap because of how many people fail to get past January before they give up altogether. So, it may be time to take a new approach! Start with a specific goal. Millions of people resolve to lose weight, be more productive, or give up bad habits for the new year. But instead of choosing a general, ambiguous goal, focus on something more concrete you can realistically measure and achieve! What about that new promotion, career opportunity, or even an advanced degree? Getting specific on how the goal is essential to your career will get you past the inevitable obstacles and failures. It will be worth the time, energy, and heart you invest in a career enhancement. Commit to developing your networks. Your professional network influences your career potential. You don’t have to attend every event and mixer, but choosing a few opportunities to connect with others or meet new people can be a building block of your resolution. Get those events on your calendar for a greater chance of sticking with the plan! Create an accountability system. Consider choosing a trusted person — personally or professionally — to check in periodically to see how you are progressing on your goals. This way, they can offer encouragement, brainstorm ideas, and hold you accountable for sticking with it. Putting thoughts on paper is also a great way to hold yourself accountable! In a journal, you can write down everything you want to accomplish within a set time frame and continuously check off the things you finish! Strive for progress, not perfection. Striving for perfection can derail your progress in the long run, so it’s important to frame your goals in terms of knowledge, networks, and experiences you collect along the path to success. No one is perfect, and everyone has setbacks along their road to success. Still, if you set your sights on the goals and take it one step at a time, you are that much closer to achievement.
Brussels sprouts are a tasty seasonal veggie to incorporate into your diet this January. With a creamy cheese sauce, this recipe takes comfort to a new level.
INGREDIENTS
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1 tbsp unsalted butter
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1/4 tsp freshly ground black pepper 3/4 cup grated Parmesan cheese
2 1/2 lbs Brussels sprouts, trimmed and halved 4 cloves garlic, thinly sliced 4 oz cream cheese, cubed
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2 tbsp heavy cream
1/8 tsp freshly grated nutmeg
1/2 tsp kosher salt
DIRECTIONS
1. Coat the inside of a 3–5-quart slow cooker with butter. Add Brussels sprouts, garlic, cream cheese, salt, and pepper. Toss to combine. 2. Cover and cook on LOW until the Brussels sprouts are tender, 2–3 hours. 3. Turn the slow cooker off or to the “warm” setting. Stir in the Parmesan cheese, cream, and nutmeg until the cheeses melt and the Brussels sprouts are coated in a creamy sauce. Season with more pepper to taste.
With the right tools, focus, and support, you can stick with your New Year’s resolutions and make this year the best!
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How to Survive the ‘Silver Tsunami’ INSIDE THIS ISSUE 1. 2. What Our Kids Can Learn From Video Games
How to Pick the Right Succession Plan
3.
Stick to Your New Year’s Resolutions
Slow Cooker Cheesy Garlic Brussels Sprouts
4.
Why We Gift Chocolates on Valentine’s
Valentine’s Day is one of our firm’s favorite holidays, so we’re turning back the clock this month to share a little bit of its history. For example, did you know that the practice of giving cards and gifts on Valentine’s Day may date all the way back to the Roman Empire? That’s when the original St. Valentine lived. There are dozens of legends about this mysterious saint, but one in particular tugs our heartstrings. According to History.com , Valentine could have been a Christian man imprisoned in Rome for his faith. The story claims that he fell in love with his jailor’s daughter and sent her a love letter signed, “From your Valentine.” We still use that phrase on Valentine’s cards today! The pope declared St. Valentine’s Day an official holiday in the fifth century. More than 1,500 years later, we still give each other notes, chocolates, lavish dinners, and other presents in St. Valentine’s memory! The practice of gifting chocolates is particularly interesting. History.com reports that it began in 19th century England. During the 1840s,
Victorian lords and ladies were obsessed with the concept of Cupid and the “courtly love” his arrows could inspire. An entrepreneurial chocolate maker named Richard Cadbury (yes, one of those Cadburys) decided to take advantage of the Cupid craze. He realized he could use the cocoa butter left over from his company’s hot chocolate process to make a range of delicious “eating chocolates.” Cadbury wanted his chocolates to fly off the shelves, so he designed elegant boxes to wrap them in. Before long, those boxes evolved into heart-shaped containers covered in Cupids and flowers — which we still use to gift Valentine’s Day chocolates today. History.com reports that Cadbury’s clever sales tactics didn’t stop there: “Cadbury marketed the boxes as having a dual purpose: When the chocolates had all been eaten, the box itself was so pretty that it could be used again and again to store mementos, from locks of hair to love letters.” Next time you receive a heart- shaped chocolate box, consider reusing it like a Victorian. Happy Valentine’s Day!
THE LEGEND OF SAINT VALENTINE
2 FORGOTTEN STORIES OF VALENTINE’S DAY HISTORY
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