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Business

Gary Miller: When should you fire your kid from the family business? – The Denver Post

John Marce had dreamed that Alex, his son, would take over the family business someday. John was the second generation of business ownership since his father had founded the company 47 years earlier — Marce Distribution Co.

It had a large presence throughout the Midwest. Clients included wholesalers, retailers, Amazon and other online channels generating over $30 million a year in revenues and pre-tax earnings of $550,000 per year. The company had an excellent reputation, low employee turnover and a “family” culture environment. Each year’s growth goals were met for the past 10 years.

When Alex graduated from college, John put him in a managerial role almost immediately. Alex had a strong personality and had always demonstrated leadership skills while growing up. Alex’s first assignment was managing the warehouse logistics and the supply chain of the firm.

Things started off fine, but soon it became clear to other managers that Alex had little affinity for the business. He appeared uninterested in filling and shipping orders accurately and on time. Vendor relationships began to deteriorate. Employees soon became discouraged and resented Alex’s presence.

Alex treated warehouse employees with disrespect — displaying a condescending attitude toward them. As a result, productivity and morale declined. John begin to realize that he had a bigger problem as longtime trusted employees were handing in their resignations.

As time went on, revenues began to decline, and customer complaints began to increase. Soon John received calls from customers complaining that they had not received their shipments on time or that their orders were improperly packaged, or short of the merchandize they had ordered.

John investigated the situation. The employees unloaded on him about all of the problems that his son was creating. They told John that his son was abrasive, abusive, arrogant and downright mean to them.

John now realized that the rise in employee resignations and customer complaints were because of his son’s personality and lack of management experience. However, John ignored the red flags and created a new department. He assigned Alex to develop and launch new product lines. But, one initiative after another failed. The sales department complained bitterly that Alex refused to listen to their feedback and advice. They told John they could not sell the new products as designed. Customers would not buy them.

As time went on, revenues and profits continued to fall. Disappointed, John reluctantly realized that Alex was not a good fit and would not be capable of leading the company in the future. If he kept Alex on, he could very well damage the company beyond repair. There was simply no place for him in the company.

Questions looming in John’s mind were: “Can I really fire my only son?” John kept asking himself, “What will this do to the family? How will it affect Alex’s and my relationship?

The fact is there is no easy way to fire your children. According to Harvard Business Review, “The consequences of firing your children are life long … no matter how well it is done.”

So, here are some recommendations to help you survive one of the most difficult times in your life both personally and professionally.

  1. Sit down and have a heart-to-heart discussion with your child just as you would with any other employee.
  2. Treat you son/daughter with the same respect that you would treat any other employee.
  3. Keep your demeanor low-key, but firm, and nonaccusatory.
  4. Don’t downplay the seriousness of the situation.
  5. Be objective and show him/her the data and the financial performance.
  6. Compare the financial performance to the expectations that they had agreed upon.
  7. Elicit his/her reactions to the problems being discussed.
  8. Provide an exit plan for your child.

John would not be in this position if he had asked himself the following questions as put forth by the Harvard Business Review:

  1. “Are expectations clear and mutually agreed upon?”
  2. “Are you unintentionally setting up your child to fail with amorphous or unrealistic expectations.”
  3. “Are you clearly defining his/her roles?”
  4. “Does your child have the right experience and skill sets to be successful”?
  5. “Is your child being held to the same standards as other employees”?
  6. “Are there clear metrics to hold him/her accountable”?
  7. “Is your child in the right role?”

If there was any doubt in John’s mind about the answers to the questions, he should seek a trusted third-party adviser such as a board member, a close business friend, or a business consultant for an independent assessment. If he had a close relationships to any of those resources, he could ask one of them to mentor Alex.

In John’s case, he didn’t hire his son based on skill sets needed for success. He had no succession plan in place. He didn’t analyze the cultural fit requirements for his business. He just hired him because he was his son.

According to The Family Firm Institute, only about 30% of family businesses survive into the second generation, 12% are viable into the third generation, and only about 3% of all family businesses operate into the fourth generation or beyond.

Some family businesses simply have a life cycle that will not go on forever.

Gary Miller is CEO of GEM Strategy Management, Inc., a M&A advisory firm advising small and medium sized businesses throughout the U.S. He represents business owners throughout the transaction process from preparing them to go to market, selling their companies, acquiring companies and raising capital. He has been a frequent keynote speaker at conferences and workshops on mergers and acquisitions. Reach Gary at 303.409.7740 or [email protected]

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Analysis & Comment

Boehly's Eldridge invests in financial technology firm CAIS

NEW YORK (Reuters) – Eldridge, the investment firm led by Los Angeles Dodgers owner Todd Boehly, has agreed to invest $50 million in Capital Integration Systems LLC (CAIS), a platform that independent wealth advisors use to access investment products and services.

Eldridge will gain a seat on CAIS’ board of directors, the companies said on Wednesday. CAIS’ valuation was not disclosed.

“We felt this was the right time to raise money,” CAIS Founder and Chief Executive Matt Brown said in an interview.

CAIS is profitable and growing at an annual rate of between 20 percent and 30 percent, Brown said. The firm offers alternative investment products such as private equity and real estate to independent wealth managers.

Many alternative asset managers are not focused on wealth managers because of their small scale. By aggregating wealth managers and alternative investment products on one platform, CAIS seeks to make investments more efficient.

Founded in 2009, CAIS is now used by thousands of financial advisors who collectively oversee more than $1.2 trillion in assets. It partners with some of the nation’s largest custodians, including Fidelity Investments, Charles Schwab Corp SCHW.N and Pershing.

Headquartered in Greenwich, Connecticut, Eldridge’s investments include fantasy sports betting firm DraftKings Inc DKNG.O, video game developer Epic Games and investment manager Maranon Capital, according to its website.

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World News

Covid 19 coronavirus: Quarantine food so bad guest forks out for Uber Eats every night

A woman in an Auckland quarantine hotel is so horrified with the food being served she’s forking out for Uber Eats deliveries every night.

Heather, who recently returned from Australia and does not want her surname used, says her meals are “uneatable” and so cold she has tried to get a friend to deliver a microwave to her hotel room.

She has been staying at the Crowne Plaza Auckland since arriving in New Zealand from Australia on October 29.

She said the meals were tasteless, the baking stale and a piece of chicken she was served was undercooked.

“It is really hard to be stuck in the room and the only thing you’ve got is food.

“[Food is] extremely important.”

A photo of the dinner she was served one evening shows a burger consisting of simply buns and a meat patty.

A container of cabbage was served with it, plus potatoes, she said.

Another night she was served beef, with broccoli, a Yorkshire pudding and mashed potato.

Heather is now ordering Uber Eats every night.

She said she hadn’t cancelled the food order because if the hotel has to do a deep clean, it will prohibit deliveries.

“Uber Eats also had to get delivered, they’re still super-hot. You wonder, where have these [hotel meals] been? I can’t stand cold food of any sort.”

The Crowne Plaza referred media queries to MBIE.

A Managed Isolation and Quarantine spokesperson said hotels being used as managed isolation and quarantine facilities must meet a number of criteria, including adequate food and drink delivered to rooms.

Hotels provide three meals a day paid for by the Government, the spokesperson said.

“Part of the site assessment for prospective facilities includes confirmation that the facility is able to provide returnees with three meals a day that meet returnees’ dietary requirements, medical needs and cultural tastes.”

Food can be prepared on-site or catered and delivered, but must comply with New Zealand food safety standards.

“Dietary requirements, including allergies, intolerances, preferences, and/or cultural/religious considerations, are identified through a questionnaire returnees answer as they enter the facility.”

Meanwhile, Uber Eats has seen a boost in sales with returnees holed up in quarantine.

One person in isolation made 63 orders on Uber Eats during their two-week stay, including 24 to Wild Bean Café.

Another person placed 25 orders at an Auckland CBD Indian restaurant— the equivalent of 1.7 times a day over the mandatory 14-day stay.

But the free quarantine grub hasn’t left a sour taste in everybody’s mouths.

The Herald spoke to returnees in quarantine in April, who gave the food a resounding thumbs up.

Christchurch woman Monique Bensemann, who stayed at Auckland’s Jet Park Hotel, said the food was nice and always came out fresh and hot.

Adam Royter, who stayed at Manukau’s Ramada Hotel, said he had “no complaints” about the food, while Gisborne father-of-one Shingo Suematsu, who stayed in another Auckland hotel, said the food he got was amazing.

A Herald report in July comparing quarantine hotels described the Crowne Plaza as having very good Wi-Fi with a plain breakfast of cereal, pastry, fruit and juice and large, hot meals three times a day.

Barista coffee was available at a charge and laundry was free, it said.

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World News

A week after Glendale police fatally shoot a man, scant information is released

A week after Glendale police shot dead a man in a pickup truck scant information has been released about the shooting and an attorney representing the dead man’s family is seeking disclosure and transparency.

“We are simply asking for investigators to give us transparency in this case,” said Matthew A. Haltzman, a Fort Collins attorney. “We want to know what the facts are.”

The Denver Police Department, Denver District Attorney’s Office, and Aurora and Glendale police are investigating the death of 36-year-old John Pacheaco Jr., who was shot multiple times on Oct. 31 when officers, with weapons drawn, approached his truck, which was stopped in traffic on Colorado Boulevard.

Haltzman, who represents Jamie Fowler, Pacheaco’s mother, said that he’s reached out to investigators but they’ve been unresponsive.

Fowler, who lives in Utah, talked with police when they called to inform her about his death and she’s also talked with a victim’s advocate from the Denver DA’s office, according to Haltzman.

“She’s asked for information in the case…What is the reason why multiple rounds were fired into my son’s windshield,” Haltzman said. “The answer has not been provided.”

Denver police gave about a three-minute news conference near the scene of the shooting a short time after it happened. At that time, police did not say whether Pacheaco was armed and there was no explanation about why officers opened fire with heavy nearby traffic on the Boulevard.

“A week has past and there’s been nothing other than an impromptu press conference,” Haltzman said. “They have failed in providing any updates or additional information.”

Haltzman said he’s preparing a notice of intent to file a lawsuit over the shooting. In the meantime, he believes investigators should be more forthcoming with the public.

“We think information should be disclosed regardless of whether a lawsuit is filed,” Haltzman said. “Our client died by a firing squad — What is the reason for that?”

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World News

Fox News host erupts at ‘pathetic fake news media mob’ as Donald Trump defies the polls

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The Fox News presenter noted the US public had once again “repudiated” the forecasts of national pollsters as they voted in their droves to re-elect Donald Trump. The results of the US Election 2020 will remain uncertain for a few days more as the final votes are counted but US broadcasters have already suggested Joe Biden may beat the President if Nevada assigns its six electoral votes to the former vice-President. Despite the possible Trump loss, Mr Hannity mocked hundreds of forecasters for repeatedly dismissing Mr Trump as a viable presidential candidate.

The Fox News anchorman said: “Last night was yet another repudiation of the pollsters, the fake news media mob completely missing the mark.

“This is pathetic, you can’t get any worse. Florida, Ohio, you name it, all across the country.”

Mr Hannity did however praise two forecasters Robert Cahaly and Karl Rove for their successful prediction a Trump win in 2016 and for the forecast of a good race in 2020 as he hit out at other pollsters.

He said: “But there were some two guys who got it right and they both got it right in 2016.

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“I noticed that guy, Nate Silver, doesn’t like you. He has been dead wrong two years in a row. Quinnipiac dead wrong, Washington Post dead wrong. ABC dead wrong.”

Despite Joe Biden leading the President by several points in national points ahead of the vote, the race proved to be much tighter than expected.

While Mr Biden managed to flip Arizona to the Democrats for the first time since 1996, other key states proved to be harder to secure, including the pivotal swing state of Pennsylvania.

President Trump is likely to win the Rust Belt state and has a significant lead in the other swing state of North Carolina.

READ MORE: Trump in Fox News CIVIL WAR after calling Rupert Murdoch ‘screaming’ over Election reports

But with Mr Biden projected to win both Wisconsin and Michigan, and votes still ongoing but with a Democratic win, the President could soon see his presidential career come to a halt after his first term.

While accusing the opponent of “fraud”, President Trump has been urged to accept the results in the event of a loss to ensure he has the possibility to run again in 2024.

Former campaign adviser Bryan Lanza suggested Mr Trump remains the likely candidate at the next presidential election because of the likely struggle the Republican Party would face in finding a successor.

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Mr Lanza said: “Donald Trump will be four years younger than Joe Biden in his current bid for the presidency.

“Age isn’t the issue. Biden will have his opportunity to guide the country under Covid and we’ll see what his successes and failures are.

“And there’s nobody in the Republican Party that can challenge President Trump in a Republican primary.

“He’s got the apparatus, he’s got the support. If he were to lose a very tight election today, he could make the claim that it wasn’t a fair and free election and the media interfered with their interference polls.”

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Politics

Frexit WILL happen! ‘Irrational’ EU attacked for ‘punishing’ Brexit Britain as bloc warned

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Generation Frexit director Charles-Henri Gallois has claimed France will also attempt to leave the European Union. During an interview with Express.co.uk, Mr Gallois insisted the EU have been behaving irrationally to punish the UK and scare other nations. He claimed when France attempts to leave the bloc they will “play tough” unlike Theresa May’s Brexit strategy.

Mr Gallois said: “To get Frexit you have to do the opposite of what Theresa May did with Brexit.

“You have to play tough directly, a bit like how Boris Johnson has done.

“You won’t get a deal with the EU, what you need to understand is the EU will not negotiate in good faith.

“They will try it, and it was the case for the UK as they don’t act rationally.”

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He also highlighted why it would be in the EU’s interest to agree a good future trading relationship with the UK.

He said: “There is a massive trade surplus with the UK and normally if you are rational you would say we have to do everything that is possible to get a deal, a win-win relationship because that is what we need on both sides of the Channel.

“But, the EU doesn’t work like this, they want to punish the member that wants to take back its freedom.

“It wants to punish the UK so the other members don’t want to leave as well.”

Mr Gallois also predicted the sovereignist movement will continue to grow.

He claimed as the UK makes a success of Brexit it will show other nations what can be achieved outside of the EU.

He said he hoped for a referendum to start the process in France as it can allow groups of people to come together for the same cause while appealing to different groups.

Mr Gallois said: “I think Frexit is likely to happen first, because I don’t think the European Union will serve us that much.

“I don’t think Brexit will help all the eurocrats across the continent.

“If Brexit is a success, as I am sure that it will be, it will give ideas to other people and countries to leave the suppressing political structure.”

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Mr Gallois noted that he did believe Frexit was possible within the next five years and other member states leaving was one of the EU’s greatest fears.

Current polling data has suggested other nations may be willing to leave the European Union if Brexit works out.

Data from the Redfield and Wilton Strategies survey found that almost 50 percent of Italians would support their country leaving the EU if Brexit works out for the UK.

In this same scenario, France and Spain both showed moderate support for reassessing their relationship with the EU.

The survey gauged the opinion of 1,500 people in each of the four countries 6,000 people in total between July 17-18.

France was second most likely to leave the bloc of the four, after Italy as 38 percent voted in support.

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Business

Seven states are considering filing their own antitrust suit against Google.

Seven states may soon file a separate antitrust lawsuit against Google, the New York attorney general, Letitia James, announced on Tuesday. That’s in addition to the 11 states that joined the U.S. Department of Justice on Tuesday in filing a lawsuit against Google, accusing it of maintaining an illegal monopoly over search and search advertising.

The attorneys general in the states that signed on to the Justice Department suit are all Republican. Ms. James and the attorneys general of Colorado, Iowa, Nebraska, North Carolina, Tennessee, and Utah said in a joint statement that they had been conducting separate but parallel bipartisan investigations into Google’s anticompetitive market behavior over the last year.

“This is a historic time for both federal and state antitrust authorities, as we work to protect competition and innovation in our technology markets,” the statement read. “We plan to conclude parts of our investigation of Google in the coming weeks.”

If the states decide to go ahead with the complaint, they would file a motion to consolidate their case with the Department of Justice’s lawsuit, and proceed to litigate the case cooperatively.

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