Outfront layout copy; copy by Anita Tyler for University of Louisville School of Business
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Outfront layout copy; copy by Anita Tyler for University of Louisville School of Business

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Copy by Anita Tyler for University of Louisville School of Business; 4-page spread

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    Outfront layout copy; copy by Anita Tyler for University of Louisville School of Business Outfront layout copy; copy by Anita Tyler for University of Louisville School of Business Document Transcript

    • For more information on UL’s College of Business visit us at business.louisville.edu D e c e m b e r 1 3 , 2 0 1 2 COLLEGE OF BUSINESS OUTFRONT, 2013 Stewart Cobb A 1956 UofL graduate, Cobb started in the hardwood Wood Products, Lamnitops Inc. and is the founder of Midwest Veneers. Tom Davidson A 1962 UofL graduate, Tom Davidson started a variety of successful businesses including Datatel Inc., Invision Medical Inc. and The Balance Bar Co. Terry Forcht A 1959 UofL graduate, Forcht leads The Forcht Group of Ken- tucky and owns 92 enterprises, in- cluding nine nursing homes, nine David Jones A 1954 UofL graduate, David Jones co-founded Humana and for 44 years. James A 1955 UofL graduate, his career as a franchisee of Jerry’s restaurants and later founded Long John Silver’s and Rally’s restaurants. Dan Ulmer A 1955 UofL graduate, Ulmer is chairman of the Louisville Bats AAA baseball team and former president and chairman of PNC Bank. Monumental achievements deserve enduring recognition Louisville has accomplished great strides in becoming a community that supports and encourages innovation and entrepreneurial thinking. Our Entrepreneurship Circle of Fame was designed to recognize the outstanding accomplish- ments of UofL College of Business alumni who drive our economy as job creators, business innovators and com- munity leaders. Enterprises such as Humana, Long John Silver’s and Forcht Bank, are just a few worth mentioning. In November, 2012, we inducted six high achievers into the Entrepreneurship Circle of Fame by carving the honorees’ names onto granite slabs inside the Jane Goldstein Plaza. Over 300 business and community leaders were invited to the induction ceremony. Join us in congratulating these inspiring business innovators: DEC. 21, 2012 BUSINESS FIRST | 23 ADVERTISEMENT Table of Contents 2 Business Insights, from The UofL Family Business Center Advisory Board 3 3 3 Family Business Center Roundtables 2013 4 New Focus for MBAs: Health Sector Management (HSM) Welcome to the University of Louisville College of Business OUTFRONT, 2013. Every great city has a thriving business school, and Louisville is no exception. Our college offers more than just a top notch business education for students; we are a resource to the business community and an economic engine for the region. Here we will recognize and support outstanding business leadership, offer some insights and reflections on the local business climate from the region’s top family business leaders, and share information on our innovative Health Sector Management MBA concentration. Excellent companies integrate business education and continued learning into their long-term strategy. Take this opportunity to get to know us better, let us support you and get to know you better. Call us to schedule a visit 502-852-7065 or visit us at business. louisville.edu. As you will see, our emphasis on leadership, innova- tion, and entrepreneurial thinking keeps UofL’s College of Business OUTFRONT. Dean Charles Moyer UofL College of Business
    • Family Businesses are the cathedrals of our economy. They represent 85% of all businesses, yet only one third survive to the second generation. The Family Business Center (FBC) at UofL’s College of Business provides family-owned businesses with tools, tactics and strategies to help them meet the unique challenges of growing and sustain- ing their closely-held businesses. Ongoing professional development and educational opportunities are essential for family-owned business leaders, especially those in the midst of transferring leadership from one generation to the next. FBC members can learn about prevailing best practices in family business management and succession by attending our educational seminars. These high- quality learning oppor- tunities are conducted by leading experts and thought leaders in succession planning, sib- ling partnerships, tax-law, family governance, preparing your family business for succession or sale, and more. In addition, Family Busi- ness Roundtables for both current and future leaders of family firms cover sensitive issues that can be intimately discussed and explored in an atmosphere of trust and confidentiality. FBC members also receive a complimentary “Family Business Checkup” and consulting services. FBC members receive discounts on webi- nars and conference calls with internationally recognized family business experts. Most im- portantly, they gain access to a supportive and growing community of family business lead- ers they can rely on for advice, understanding, and guidance. To become a member, call us at 502.852.1048 today or visit us on the web at business.louisville.edu/fbc. 1. In your opinion what is the local business climate for family and/or small businesses in 2013? Many of our members have experienced an upturn in business activity during the last quarter, and would express some degree of confidence in the short term. Their long-term outlook on the business climate, however, is more restrained. When we asked our members to describe the overall local business climate they used the words “flat,” “uncertain,” “heads down,” and “ap- prehension.” Our members do not see a large increase in earning capacity in 2013. For fam- ily businesses in particular, “Taxes are a huge upcom- ing factor” – estate, health care and small business taxes are going to hit family businesses hard in 2013. We will need to watch Congress and see what the tax landscape looks like, and whether or not the fiscal cliff will be avoided. Many local businesses will decide to either expand or contract depending upon the outcome. It looks like the local climate is at a standstill. Everyone is hesitant to make a move. Others refer to it as a “wait and see” attitude The focus for now is on maintaining rather than growing. Many businesses are waiting for cer- tain queues from state and local government, federal government, the economy, and banks before investing in a new initiative or growth plan. 2. What is the biggest challenge to growth for family and small businesses In 2013? For family businesses in particular, the biggest challenge in 2013 is estate planning and perpetuation of the family business; it’s going to be very difficult to pass it on to the next generation. In 2013, the tax-free gifting amount falls from $5 million to $1 million, with a rate increase from 35% to 55% on additional amounts gifted above the maxi- mum. This makes it restrictive for family businesses to initiate generational transfers. Consequently, many family businesses feel pressure to make the transitions early in order to take advantage of the tax landscape of 2012 and avoid the fiscal cliff. The downside of rushing this process before the end of the year is that succession-planning is a long-range, complex and dynamic set of activities, and both the current and next generation must be adequately prepared in order to pass the torch successfully. Transferring ownership in order to avoid the fiscal cliff is not the ideal way to transfer a business to the next generation, and could potentially destabilize the business. Poorly planned generational transfers are the main reason why only one third of family firms survive to the second generation. Access to capital will continue to be a challenge in 2013. Renewing loans and secur- ing additional financing are increasingly dif- ficult. With margins tight, banks don’t seem to want to lend money to those who really need it. Private money is available however; traditional investments are no longer attractive or available, so groups of private investors are pooling their money together. The problem, however, with private investments and fam- ily businesses is the potential loss of family control, as private investors tend to carve out a percentage of ownership in order to steward their investment. In some cases this may actually be a good thing for a family business looking to professionalize their operations and bring in outside expertise. 3. What’s the biggest opportunity for family and small businesses to grow in 2013? There is an opportunity for small busi- nesses to acquire other companies, as many businesses are looking to sell in what is now a buyer’s economy. Local companies who were unable to manage through the past five years of difficult economic climate are selling, for better or worse, at a discount. One family business leader indicated that his family firm acquired three businesses in 2012, and they expect this trend to continue. Again however, financing is hard to come by for those who are not cash positive. This represents a signifi- cant opportunity for companies with a cash reserve. With rates extremely low, companies are not benefiting from holding large cash accounts as assets on their balance sheets and there are many promising opportunities to put that money to work. Our members also referenced an opportu- nity in 2013 to improve efficiency, operations and to strengthen their business model. It is a good time to invest in your people by provid- ing leadership training, continuing educa- tion, and skill set building. Many of these companies have looked at internal processes and made the decision to upgrade their in- frastructure and implement new information technology investments to improve efficiency. Some are investing in social media and other innovative marketing strategies. One specific and unique area of growth and opportunity experienced by our mem- bers is in the area of local and agri-tourism. People want to and will continue to want to stay closer to home. Extravagant vacations have been put on hold in favor of regional venues because of the economic squeeze. Busi- nesses connected to this industry have seen an increase in activity and will continue to see growth in 2013. 4. see local and state government enact to improve the business climate of family and small businesses in 2013? Our members identified several issues that state and local government will need to address in order to improve the economic JA N UA R Y 2 4 Four Family Business Crises & How to Avoid Them Two-thirds of all business crises are preventable – no matter how big or small your business is. The Institute for Crisis Management’s Larry Smith and Family Business Psychologist Ellen Franken- berg will identify the four types of crises every family business faces and outline steps to protect you from them. Register at www.regonline.com/fbcjan2013. M A R C H 2 0 Dr. Van Clouse of the award-winning Forcht Center for Entrepreneurship and Carl Chap- man, CEO/Chairman of Vectren Energy will explore how successful firms ignite entrepreneur- ial thought and action! They will also discuss the importance of continuous innovation and opportunity identification within established businesses. Family Business Roundtables are small, private meetings where you can benefit from trusted peer advice for your family business and learn what others have done in similar situations. A group consisting of 7 to 12 individuals from non-competing family businesses participates in discussions led by a professional facilitator. If you would like to join us for one of the following upcoming roundtables, call 502.852.1048 or email Kathleen.hoye@louisville.edu for details. New roundtables are also forming in 2013. Hurry, space is limited. > For CEOs and owners in charge of family businesses. > For sons and daughters of family business CEOs/Owners who are likely to take a leadership role in the future. > Exclusively for wives, shareholders, in-laws, daughters or mothers who are affected by or partici- pate in a family business. If you’re female and concerned about the impact of the business on the family or the health of the family, this one’s for you. PRESENTS A FAMILY BUSINESS SEMINAR Four Family Business Crises & How to Avoid Them. January 24, 2013 8:30 a.m. to 1:30 p.m. The Seelbach Hilton, Louisville, Kentucky Two-thirds of all business crises are preventable – no matter how big or small your business is. Larry Smith, Institute for Crisis Management and Ellen Frankenberg, The Frankenberg Group will discuss important characteristics of family business crises and give you the tools to identify them and mitigate their impact. Don’t miss this important and timely topic; it could make the difference to ensure the success and longevity of your family business. Sudden Smoldering Bizarre Perceptual Register at: http://regonline.com/fbcjan2013 www.business.louisville.edu/fbc DEC. 21, 2012 BUSINESS FIRST | 25 ADVERTISEMENT 24 | DEC. 21, 2012 BUSINESS FIRST ADVERTISEMENT Meet our UofL Family Business Center Advisory Board Contributors Winery & Vineyards Family Business Center informs, celebrates and strengthens family firms Preview of Family Business Center 2013 Educational Forums Join an upcoming Family Business Roundtable A roundtable session was held on November 1, 2012 at Harding Shymanski and Co., with the Advisory Board of the Family Business Center. This group consists of top family business leaders representing the largest and most established family firms in the region. We asked them to address economic and business changes and challenges that could affect the climate for family or small businesses in 2013. Here are some of the key insights and observations that emerged from that discussion: Family & Small Business Predictions, 2013 M AY 2 1 Together Wendy Sage Hayward is an expert in assisting family members to collaboratively create systems, structures and relationships that help them function as effective stewards of their enterprise, especially as more generations enter the fold and inactive shareholders begin to have a voice. S E P T E M B E R 1 7 An expert in generational transitions, David Ransburg brings a unique blend of business and psychology to the table. He will present proven strategies for your family business transition and will offer valuable insights and communication tools from his extensive experience working with transitioning family firms. www.efamilybusiness.com To attend any or all of these upcoming seminars, or for more information, please call 502.852.1048 or register online at business.louisville.edu/fbc. Kathleen Hoye, Director of the Family Business Center (FBC) at the College of Business has been awarded the Certificate in Family Business Advising by the Family Firm Institute (FFI). This Certificate is presented to individuals who have achieved comprehensive professional knowledge and gained significant expertise that can be used to advise family business owners and family wealth clients. This distinction further ensures the highest standards in professional best practices will be implemented. Participants like Hoye have access to the latest information and resources for exploring the core disciplines – behavioral science, finance, law and management science – and steps for forming collaborative teams. Hoye has fine-tuned her skills to help family and small businesses in our community grow and prosper, and is now offering family business consulting services through the Fam- ily Business Center. The Family Business Center offers interactive workshops, roundtables and events, case studies, panel presentations and education forums; providing FBC members with access to modern solutions for today’s family-owned businesses. Director of Family Business Center at the College of Business receives International Certificate in Family Business Advising Kathleen Hoye Director of the Family Business Center
    • Most new year’s resolutions last 31 days. This year make a resolution that lasts a lifetime. visit us at business.louisville.edu/mba 26 | DEC. 21, 2012 BUSINESS FIRST ADVERTISEMENT Investing in Health Sector Manangement electives - a wise ROI The business of health care is booming and with our MBA with a Health Sector Management (HSM) concentration, stu- dents are gaining valuable knowledge in the many facets of this dynamic field. All MBA degrees can now include a Health Sector Management concentration. This option includes cutting-edge electives taught by top leaders in the industry. MBA students who participate in HSM electives are exposed to global issues, trends and strategies in patient outcomes, access to care, physicians’ office management, cost management and service delivery models, patient and provider relationships and orga- nizational dynamics unique to this industry. This includes courses in critical skills needed for top management positions in bio-medi- cal, facility administration, financial, insur- ance services, senior care and marketing. Our MBA is a fast-track solution for working professionals. Our accelerated programs deliver the skills, experience and networking needed for graduates to advance, seek a leadership position or successfully transition to a new career. Regardless of your focus, our MBA includes a revolving sched- ule of classes organized in 5-week modules. Students benefit from a world-class faculty, many of whom come from Fortune 500 companies. For more information about our MBA programs, visit us on the web at business.louisville.edu/mba or call us at 502.852.7257. Rankings climate of this region. One is the focus on in- dustry attraction. Our members strongly feel that more effort needs to be made to retain and grow companies already operating in this region. The limited number of incentives for expansion of existing companies makes it dif- ficult to retain and grow our economic base. Surrounding states meanwhile are offering benefits to lure companies across state lines. Tennessee, for example, has no income tax, yet we have an added occupational tax on top of state income and federal income taxes. Indiana and Tennessee are also both “right to work” states. The government did finally offer a tax-credit to companies investing in infrastructure here in the state. Previously, this law was exclusively offered to companies making an initial investment into the state or moving their company here. More industry retention and growth incentives like these are applauded and encouraged. At a Glance 1 2 Management 3 4 Financial Issues in Health Sector Management 5 6