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re: Anyone ever quit a family owned business?
Posted on 12/28/16 at 12:30 pm to uptownsage
Posted on 12/28/16 at 12:30 pm to uptownsage
You seem like a smart person, and you have your own client base, so maybe this does not apply to you. But . . .
My experience is that younger people who leave a family business don't do well. Family is family, and often they have been sheltered.
As I say, you seem sharp, and I wish you all the best. Just be completely prepared for what you are getting into.
My experience is that younger people who leave a family business don't do well. Family is family, and often they have been sheltered.
As I say, you seem sharp, and I wish you all the best. Just be completely prepared for what you are getting into.
1
Posted on 12/28/16 at 12:36 pm to baldona
quote:
Mom should of stayed out of it and taken whatever the son would give her.
Unless there was a will drawn up in advance, wouldnt the mother become the owner by default once the dad died? If thats the case then "legally" she had all right to get a lawyer to draw up the sale. Sure it was shitty what happened, I'm not denying that at all. But thats why its so important to have a will made out.
As far as your comment of her taking whatever the son would give her, doesnt she have a right to what her husband built over time in their marriage? Pretty sure that maybe 1% of wives would just stay out of it and just take whatever. It goes both way here. Just like this mother was about to frick her son, with your mindset the son couldve easily fricked the mom. Not saying that wouldve happened, but the opportunity is there with your line of thinking.
Posted on 12/28/16 at 12:41 pm to baldona
quote:
Mom should of stayed out of it and taken whatever the son would give her.
Not really. What she should have done is have the a practice valuation done by a third party that knows this business. That would have given them a good starting point on negotiations.
Posters always are critical of others for not employing attorneys and accuse those that don't of being cheap.
Picking the wrong lawyer might be worse than not having one at all.
Posted on 12/28/16 at 12:47 pm to JOHNN
quote:
Unless there was a will drawn up in advance, wouldnt the mother become the owner by default once the dad died? If thats the case then "legally" she had all right to get a lawyer to draw up the sale. Sure it was shitty what happened, I'm not denying that at all. But thats why its so important to have a will made out.
As far as your comment of her taking whatever the son would give her, doesnt she have a right to what her husband built over time in their marriage? Pretty sure that maybe 1% of wives would just stay out of it and just take whatever. It goes both way here. Just like this mother was about to frick her son, with your mindset th
As I already said, take the son out of it. The mom does this to any other dentist, the same thing happens. The mom tried to use "family" leverage which is BS on the son. The mom made a horrible business move and she lost because of it. Blaming anything on the son is idiotic.
The dad was a dentist and was old enough to have a dentist son. If the mom didn't have enough money to retire without the business money then they were very VERY poor with money and very dumb for not having life insurance. Again, how is any of that on the son?
Therefore, the mom was being very greedy trying to make money off the son when she had little to no leverage. You know how I know the mom had no business sense? She hired a terrible lawyer which is on her and she didn't do her due diligence or was greedy. How many dental wives don't know other dentists? How hard would it be to call a friend or any other dentist and ask for a business evaluation? Not hard.
This is the issue with family business is trying to use leverage that would not have otherwise. It goes both ways from owner to family member, and from family member to owner.
This post was edited on 12/28/16 at 12:50 pm
Posted on 12/28/16 at 12:47 pm to JOHNN
quote:
Unless there was a will drawn up in advance, wouldnt the mother become the owner by default once the dad died? If thats the case then "legally" she had all right to get a lawyer to draw up the sale. Sure it was shitty what happened, I'm not denying that at all. But thats why its so important to have a will made out.
As far as your comment of her taking whatever the son would give her, doesnt she have a right to what her husband built over time in their marriage? Pretty sure that maybe 1% of wives would just stay out of it and just take whatever. It goes both way here. Just like this mother was about to frick her son, with your mindset the son couldve easily fricked the mom. Not saying that wouldve happened, but the opportunity is there with your line of thinking.
Yes she does, but in La a non dentist (the mother) can only own a dental practice for IIRC 6 months and then is forced to sell or shut down the practice.
She essentially shut down the practice and since the son was seeing the patients, it was his duty to offer to transfer the records so that their treatment/relationship was not interrupted. After he left the practice and 80% agreed to have their records transferred to him at his new location, she had nothing to sell.
Bad advice made her asset worthless. I wonder what she paid for that advice?
Posted on 12/28/16 at 12:54 pm to ruzil
quote:
Yes she does, but in La a non dentist (the mother) can only own a dental practice for IIRC 6 months and then is forced to sell or shut down the practice.
haha, in that case the mom and lawyer were even bigger idiots. I would almost think the mom might have a legal issue against her lawyer for malpractice.
Then again, its very easy to blame this on the lawyer being bad when things like that could be the mom pushing the lawyer. I have a hard time believing the mom and dad never discussed how much the practice is worth. I mean never? I'd bet the mom was being a stubborn beech and didn't want to believe anyone because she knew how much her husband made and "knew" it had to be worth more.
Posted on 12/28/16 at 1:04 pm to baldona
quote:
Blaming anything on the son is idiotic
quote:
Again, how is any of that on the son?
Man calm down. I never once blamed the son for anything that happened. He was dealt a shitty situation and I said that a couple different times.
Before it was later mentioned that the mom and son made up, I asked if the friend thought losing his mom was worth what was received. I hate to see families destroyed over business dealings as Ive seen it way too many times.
Posted on 12/28/16 at 1:44 pm to baldona
quote:
I'd bet the mom was being a stubborn beech and didn't want to believe anyone because she knew how much her husband made and "knew" it had to be worth more.
Dental practices generally sell for 40-75% of the last three years average collections. Who knows, there may have been a little under reporting of cash by the senior doctor, deflating the true value of the practice. Junior, may or may not have known this and just went by tax returns.
Posted on 12/28/16 at 2:11 pm to upgrayedd
Says the guy who's family doesn't have shite. ??
Joking; but seriously, I'd rather have moderate income than be financially killing it in a family business. Lots of drama and politics. Tough stuff. Much rather branch out on my own with a solid plan.
Joking; but seriously, I'd rather have moderate income than be financially killing it in a family business. Lots of drama and politics. Tough stuff. Much rather branch out on my own with a solid plan.
Posted on 12/28/16 at 2:29 pm to JOHNN
quote:
mother was about to frick her son, with your mindset the son couldve easily fricked the mom.
pics are needed to properly evaluate.
Posted on 12/28/16 at 2:35 pm to uptownsage
If they really gave a shite about you, they would support you in trying to advance yourself with starting your own business.
Posted on 12/28/16 at 2:42 pm to ruzil
quote:
40% of the last three years average collections
Assuming a ~15 to 20% profit margin this is in the ball park IMO. Take an average of 3 years of gross margin and maybe add a little for not having to deal with starting a business from scratch.
Posted on 12/28/16 at 3:22 pm to LSU0358
The low end of that range would be for a practice in a not so desirable area, antiquated equipment, high insurance dependence.
That would probably describe this practice exactly.
That would probably describe this practice exactly.
Posted on 12/28/16 at 3:33 pm to LSUdubai
quote:
Lots of drama and politics. Tough stuff
I agree. Last year I worked for the girlfriend's family. It was ok, but not really a great place to be when some family members treated the business like a piggy bank and the other employees had to make up for it. I was lucky enough to have been able to get out with the blessings before some relationships turned sour. Over a year later, nothing has really changed with them.
Posted on 12/28/16 at 3:36 pm to UF
quote:fify
Don't ask me about my business, and i won't tell you no lies...
This post was edited on 12/28/16 at 3:37 pm
Posted on 12/28/16 at 3:42 pm to VABuckeye
quote:
My son will be coming into our business full time once he graduates from college in May. He's worked for me for the last 5 summers learning what we do and how we do it. Now it's time for him to take the next step and start running the buiness with me. We're in growth mode so it's a fun and stressful time for us. We've already discussed a path and time frame for him to take over the business. We've also discussed that there will be a buyout and that if he wants to sell before the buyout is completed he'll have the number for me to agree to sell. I look forward to the day when he takes over. I could never work with my daughter. We simply wouldn't see eye to eye and in business everything can't be a debate. There has to be a decision maker. This doesn't mean that I don't take other peoples views under consideration but at the end of the day it's my reputation and my finances that are at risk. So, at times it's a dictatorship as it needs to be.
It sounds like you are an exception to the rule, or a very rare commodity (in a good way).
I am in the family business and it is a complete disaster. We have a great thing, but it has been an blessing and a curse.
The only reason I (the only of four kids) stick with him is because I am in it to be by his side. When he quits working, he will die. I don't feel like I am sacrificing my career, and am confident I will be able to transition. I love our business, what my parents have built - but my siblings have delusions of what it is, and what will happen when my father is gone. I know my mom is going to try to cash in, as she should - but I will just make my attempt to buy our license and build my own thing out of it - or move on.
The situation has contributed to very unhealthy family relationships and turmoil.
Family business is not an easy thing.
Posted on 12/28/16 at 3:46 pm to Monday
I wouldn't work for the in-laws, frick that, much less a gfs family that will hate you when you break their darlings little heart.
Posted on 12/28/16 at 5:10 pm to southernelite
Dentist son was wrong for taking client lost and sending them letter. Wonder if Board lawyers would sue over it?
Posted on 12/28/16 at 5:43 pm to uptownsage
Yep, my brother
Posted on 12/28/16 at 5:51 pm to uptownsage
quote:
Just wondering if anyone had worked with family for a long time and quit to go start your own business? I am approaching 14 years of working with family, but will be leaving and starting my own business with a month or two. Part of me is having feelings of sadness from leaving something I have been highly invested in for so long. However, I would caution everyone to never go into business with your family.
Do what you need to do. I run a family business now with my parents still involved in the office side of things. We butt heads from time to time but we are able to separate work from personal life.
My buddy from high school"s parents own one of the best landscaping businesses around, they specialize in landscape design and installation. he came back after college and worked with them for about 5 years before buying his own nursery and specializing in retail landscape, more selling the plants rather than designing the yard. They send business back and forth to each other and it works well.
The biggest thing about family businesses is that they fail most often from dead weight. there are only so many families that can live off one income. If the company can support two families, don't try to pay 3 families unless the third carries its weight, then you need to find out how to do better.
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