Private company owners strive for success but getting there is not an easy or straight path. I have been working closely with business owners now for more than 40 years, and I have been reflecting on the key character traits shared by successful entrepreneurs. These views are not based on peer-reviewed research but are gleaned
Family members who enter into a private business together are taking on double risk. They face the same types of challenges that all owners and investors face in operating/investing in a business, but they are also exposed to the risk their personal relationships may suffer if the company does not fare well. For this reason,
“Uneasy is the head that wears a crown,” from Shakespeare’s Henry IV, Part 2, is often mistranslated in modern times as “Heavy is the head that wears the crown.”
Majority owners of private companies have many important decisions to make, but one of their most impactful will be selecting the people to serve as the
As the year winds down, majority owners can hit the ground running in the new year if they adopt business resolutions that motivate their executive group and create the potential for the company to reach new heights. The benefits of these resolutions include achieving more efficient operations, establishing better teamwork, and instilling a renewed sense
The one who has the gold often makes all the rules, but the majority owner of a private company who has minority partners in the business does not have complete freedom, because majority owners owe duties that apply to their operation of the company. Majority owners also typically serve as officers, directors, managers or partners
Marital divorces are often difficult under the best of circumstances, but tensions may be even higher when the marital estate includes substantial interests the married couple own jointly in private companies, which they are seeking to divide in their divorce proceeding. The issues likely to create conflict include (i) determining the fair market value of
We accept that beauty is in eye of the beholder but determining what a private company is worth should be much more objective. Yet, for a business owner who is considering a sale of the company, it may come as a surprise that the methods commonly used by valuation experts to determine the company’s value
It may be a reflection of summer’s lazy days or a simmering frustration that has built up over time, but it is not uncommon for a majority owner or a minority investor in a private company to decide the time has come to separate from his or her business partners. The majority owner may wish
Successful private company owners often share the traits of having vision, passion and a strong sense of purpose. That does not mean that they govern their companies without having any disagreements with their minority partners. In fact, it is common for business partners to have divergent views about the company and its growth plans, because
Most of our posts focus on issues related to Texas private companies such as LLCs or corporations, but the real estate joint venture (JV) is another distinct but common way for two or more private parties to form a legal entity. These JVs are often used for the purpose of buying, developing, leasing, operating, managing,
