Family Financial Dynamics-How Shareholder Distribution Alternatives Affect Family Business Decisions

Holland & Knight Webinar
September 13, 2012
1:00 PM - 2:00 PM ET

Family businesses often wrestle with ideas around disbursing cash. Do we make a distribution, do we not make one, how often is it recommended and what kind of issues do we create by either embracing distributions or not? In addition, there are considerations around what the sentiments of the enterprise and the family are towards financial matters. This includes what purpose are we serving as a business and as a family? And, are we stewards of our business and plan on growing it for the next generation of family members or are we interested in current returns?

There are a multitude of considerations regarding shareholder distributions. Our three presenters will share some key questions and possible solutions.


Drew Mendoza 
Managing Principal of The Family Business Consulting Group, Inc.

Fred Floberg 
Managing Director of The Chicago Corporation

Mike Zdeb Partner
Holland & Knight LLP

Some key points that will be discussed so a family business can determine what is appropriate include:

The Ownership/Family Perspective

  • Are there best practices?
  • What are common policy provisions?
  • Who determines the distribution policy?
  • How can a lack of policy impact the business or the family?

Legal Perspective

  • What legal obligation, if any, is there to provide a distribution?
  • What is a director's fiduciary obligation to ownership and to the business?
  • Is a shareholder's tax position relevant?

Investment Banker Perspective

  • Is a recapitalization a path to shareholder distribution?
  • Should a stock redemption plan be in place? If so, what should it look like?
  • How do we determine frequency and size of the distribution?

Who should attend this webinar?

  • Advisors to family businesses
  • Owners of a family business
  • CEOs and CFOs of a family business

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