David Kopaloff’s Post

Berkshire Hathaway is an extremely valuable conglomerate, but the meticulous succession plan that the business has in place can nevertheless provide crucial lessons for companies of all sizes, writes attorney Matthew Erskine. In particular, the plan emphasizes the importance of starting early, developing a culture of learning and embracing a transparent approach when possible. Full Story: https://lnkd.in/guYKQYug  #cavalierassociates #financialintelligencereport #smallbusiness #successionplanning

Berkshire Hathaway is an extremely valuable conglomerate, but the meticulous succession plan that the business has in place can nevertheless provide crucial lessons for companies of all sizes, writes attorney Matthew Erskine. In particular, the plan emphasizes the importance of starting early, developing a culture of learning and embracing a transparent approach when possible. Full Story: https://lnkd.in/gcnqrv6Q  #cavalierassociates #financialintelligencereport #smallbusiness #successionplanning

Berkshire Hathaway is an extremely valuable conglomerate, but the meticulous succession plan that the business has in place can nevertheless provide crucial lessons for companies of all sizes, writes attorney Matthew Erskine. In particular, the plan emphasizes the importance of starting early, developing a culture of learning and embracing a transparent approach when possible. Full Story: https://lnkd.in/dDqv6HEk  #cavalierassociates #financialintelligencereport #smallbusiness #successionplanning

Berkshire Hathaway, the multinational conglomerate holding company led by Warren Buffett, has long been hailed as a paragon of successful business management and investment strategy. An integral factor contributing to its triumph is a meticulously crafted succession plan, in place since at least 2006. This plan, inadvertently disclosed by Vice Chairman Charlie Munger during the company's annual meeting in 2021, has been reiterated by Warren Buffett on multiple occasions. Here's the plan in a nutshell as reported by Matthew F. Erskine in WealthManagement.com: https://lnkd.in/gv24iAzk #successionplanning #succession #business #businessowners

So, what can private business owners glean from Berkshire Hathaway's succession plan? There are several invaluable lessons to be learned: 1. Initiate early 2. Foster a culture of learning 3. Embrace transparency 4. Delegate responsibilities

BUFFETT’S BUSINESS SUCCESSION PLAYBOOK Berkshire Hathaway has been in the news quite a bit over the past few months - largely because of the death of Charlie Munger and Warren Buffet’s business succession planning. You don’t have to be as big or as successful to learn from the playbook Buffett put into place. Want to make sure your business succession plan protects your financial future? We can help. Contact Elli Schochet or Sarah Brown at purpose@algbrown.com or 416-787-6176. #businesssuccession #financialplanning #wealthplanning #purpose #powerofpurpose

My fellow consultant @Stevephen L. McClure has written an article on Non-Operating Shareholders being positively involved in their ownership. Family business owners often struggle as their shareholder groups increase in size and diversity of involvement. Take a moment to explore this topic with my learned friend and colleague. #FBCG #thefbcg #cepa #ifg #familybusiness #familycouncil #arvc #carvc #fbn #ffi

The acquisition of a family business by a PE firm can bring transformative growth and new opportunities if managed with care and strategic foresight. The CEO, acting as a mediator, plays a critical role in ensuring that this transformation respects the family's legacy while efficiently integrating the growth-oriented strategies of PE investment. Their adept handling of the nuances of family business operations and PE expectations can lead to a partnership that not only achieves financial goals but also fosters long-term stability and success. Read more in the article below written by our Consultant Giulio Iaconetti https://lnkd.in/dHdGXeKd

Charlie Munger’s legacy loomed large at Berkshire Hathaway’s annual meeting. With his death, perhaps the most prominent and enduring of business partnerships came to an end. Shareholders gave a standing ovation, Buffett accidentally called Greg Abel “Charlie”, and answered a poignant question about how he would spend one more day with his dear departed friend. Investing is a lonely path and having a partner and sparring partner like Munger is invaluable. I’ve been reflecting on how he influenced Buffett and Berkshire and how we could each find our version of someone like him (for Munger’s take on Berkshire, see his 50-year analysis). Munger of course influenced many of Buffett’s decisions, most notably the pivot to business quality starting with the acquisition of See’s Candy. As Buffett recalled in 2013, “Charlie was the one that said, ‘For God’s sakes, Warren, write the check.’” But, as I explored in 'Warren E. Buffett, An Alternate History', Munger also helped Buffett early on, when the latter’s big bet on Dempster Mill was failing. “We were going to dinner with the Grahams and the Mungers,” Buffett recounted. “I’m telling Charlie, ‘I’m in this mess with this company; I’ve got this jerk running Dempster, and the inventories keep going up and up.’” “Well, I know this guy that used to bring around tough situations,” Munger responded and connected Buffett with turnaround specialist Harry Bottle. Buffett had made Dempster a large position in his fund and later called Bottle perhaps “the most important management decision” he had ever made. “If Dempster had gone down,” he noted, “my life and fortunes would have been a lot different.” Without help from Munger, Buffett might have sworn off taking control of challenging businesses — perhaps he would never have touched an ailing textile mill called Berkshire Hathaway… At Berkshire, Munger became the “abominable no-man” for pushing back on Buffett’s investment ideas. Buffett could be “pretty rigid,” his biographer Alice Schoeder pointed out, “and doesn't really listen. He has incredibly firm convictions and is often right, to say the least.” Munger was one of the few who could meet Buffett's intellect and was never afraid to voice his opinion. Munger’s role was crucial because even the masters have their strengths and weaknesses, their biases and blind spots. But that’s just the tangible “return on relationship”. What is at least as important are the decades of shared friendship, learning, and joy. As Buffett recalled, he and Munger had fun together, especially when digging themselves out of the occasional hole of a mistake. “We’re old-fashioned. We’re boringly trite,” Munger once said. “All the old virtues still work.” And what could be a better example of the ‘old virtues’ than this lifelong friendship rooted in mutual admiration and respect? How do you find that kind of partner? See the rest of my post on my substack: https://lnkd.in/ghgwJK5x

Family-owned firms face unique challenges, including work-life balance, personal conflicts, and succession planning. Overcoming these challenges requires clear communication, strategic planning, and, in many cases, the willingness to bring in external expertise and possibly outside investors. Learn more about what we can do for you at www.ljwwealth.com. #businessadvisors #businessowners #businessleaders #exitplanning #exitstrategy #financialplanning #valuation #mergersandacquisitions #valuecreation #valuegrowth