Family Business Buyout

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					          goering Center
                                                             FamiLy BuSinESS rEPort

                                                                                  Finding Solutions
                                                                                     Sharing Experiences                                               UC College of Business

P r o f e s s i o n a l ly s P e a k i n g                                                                 A Supplement to the buSineSS courier JUne 15, 2007

                                                     Is The Gifting of Shares in a Family Business the
                                                     Right Approach to Succession?
                                                     Mark your Calendars to attend the Family Business of the Year
                                                     Banquet at Music Hall on August 28, 2007!
                                                        Many times next generation family             Gifting the family business stock       to the next generation. Additionally,
Dr. Sidney L. Barton
Founding Executive Director                          business leaders find themselves in          has many limitations. Most of the           if a company is growing and healthy,
                                                     compromising positions when                             time family businesses are       the gifting may not even cover the
Participation: Second                                they gain shares through                                built around a culture of        growth. What should be a business
Element of a Family Charter                          family gifts. Perhaps a plan
                                                     for a gradual buyout of the
                                                                                                             dedication, struggle, pas-
                                                                                                             sion, family stories, and
                                                                                                                                              decision dealing with continuity and
                                                                                                                                              management gets confused with
    In April, I introduced the family council        family business can improve                             hard work, and the found-        family issues. The demands of the
as a critical organizational entity for on-go-       the successor’s commitment                              ers are viewed many times        family system (equal treatment for
ing family business success and discussed            to the business, provide cash                           as heroes. Gifting tends         all) conflicts with the business system
succession as the first element of a Family          flow for the outgoing owner,                            not to create heroes of the      requirements (rewards on the basis
                                                                                        W. kent lutz,
Charter. To review, the family council is            and help minimize estate taxes. Director               next generation because the       of performance). These conflicting is-
comprised of all the members (usually adult             A buyout strategy can help                          perception is that they really    sues cause confusion, procrastination,
members only) of a family with control-              solve several problems, which gift-          didn’t have to struggle much to gain        and indecision for the senior genera-
ling interest in a business. The primary role        ing cannot address. First, it forces         their ownership.                            tion who wants to do right, while at
of the family council is to facilitate com-          the next generation to take a very               Gifting can make estate planning        the same time be fair.
munication between the business and the              business-like approach to the busi-          and estate equalization planning very           Leverage buyouts, which have
family. Meetings of this group are intended          ness, as it forces them to shoulder          complex when there are children             been prevalent for a long time in
to educate all family members on the vari-           payment obligations, while working           active as well as inactive in the family    large corporations, work very well
ous aspects of the business, and to promote          hard to make sure they can meet              business. If gifts of stock in the family   in closely held family businesses.
trust and understanding so as to reduce              these financial obligations. Second,         business are made to all children,          Senior generation business owners
potentially destructive conflict. The most           gifts often come with strings attached       family problems can arise later and         can realize full fair market value for
important of the tasks of a family council           because kids cannot challenge their          are almost assured to do so, particu-       their family business. Psychologically,
is to develop and communicate the “rules             parents without appearing self serv-         larly when the senior generation may        a buyout cuts the strings associated
of engagement” – or what we will refer to            ing or possibly jeopardizing the next        not be around to referee the family.        with gifting, and the next generation’s
as the Family Charter- for the family and            possible gift, while a buyout helps          If only children active in the busi-        commitment can be evidenced in
the business. (This is a concept originally          eliminate that. Third, even though the ness are gifted stock, what is done for           their willingness to assume personal
introduced in 1987 by Dr. John Ward, and             next generation may own stock in the         the inactive children? And when? If         guarantees on the debt associated
has been a foundational element of success-          company through gifts, they know             other assets are gifted, are they assets    with the transaction.
ful family firms ever since.)                        that the company is still really owned       the senior generation will need for             For tax purposes there are a variety
    The second most important element of a           by the senior generation, and gifts are      financial security in retirement? The       of ways to structure the transaction
Family Charter is the rules for participation.       really made with the understanding           senior generation may even fail to          to aid the buyer group in making the
                                                     that nothing has really changed, while complete the gifting program because              payments while at the same time pro-
                              Continued on Page 2B   a buyout means that a real change has        of concern of fairness to different         viding the senior generation the sat-
                                                     in fact taken place.                         children-perhaps at the exact time          isfaction of realizing full value for the
                                                                                                  that the reins should be turned over        business. Most importantly, the buy-
 Goering Center Partners
                                                                                                                                                                   Continued on Page 8B

                                                                 Ken Byers
                                                                & Associates
                                                                                                                                 Finding Solutions. Sharing Experiences.
B JunE 15, 007                                                                                                                                                                   a Supplement to the Business Courier

                                                                                                                                                                                   Goering Center
When Should You                                                                                                                                                                    members

Plan Your Estate?                                                                                                                                                                   Amend consulting, llc
                                                                                                                                                                                    American micro products
                                                                                                                                                                                    ASAp event Advertising
                                                                                                                                                                                                                         Ken byers & Associates
                                                                                                                                                                                                                         Kevin Alleman
By Patrick Dolle , Fifth third Bank Private Client Group                                                                                                                            Aurora casket company, inc.          King bag & manufacturing co.
                                                                                                                                                                                    Aveda Fredric’s, inc.                Klosterman bakery
    The purpose of estate planning is to be       Reduce Uncle Sam’s Share                          and fund it with your charitable contribu-                                      bachman’s, inc.                      Krombholz Jewelers
                                                                                                                                                                                    bakery crafts                        larosa’s inc.
sure that after you pass away, your assets go         Keep in mind that the amount that can         tion. The charity will receive the trust’s assets                               baldwin Gilman, llc                  len riegler blacktop, inc.
to your intended beneficiaries. Therefore,        be sheltered from federal estate tax is $2 mil-   when the trust’s term ends. Before that,                                        barnes, Dennig & co., ltd.           leonhardt plating co.
people often associate estate plan-                            lion in 2007-2008 and is sched-      income from the trust can be paid to anyone                                     beamer brothers trucking             london computer Systems, inc.
                                                                                                                                                                                    big chief, inc.                      loth, inc.
ning with old age and decide to                                uled to increase to $3.5 million     you choose -- including yourself -- as the                                      bGr, inc.                            ludlow Ward capital Advisors
put it off. However, the best time                             in 2009. This means that you can     trust’s beneficiary. Thus, a charitable remain-                                 blaine pharmaceuticals               lykins companies
to plan your estate is now, while                              avoid owing estate taxes on any      der trust allows you to support a good cause                                    bracken ridge, inc.                  mason co.
                                                                                                                                                                                    bridge Advisors, inc.                matlock electric
you can -- before you need an                                  amount that you leave to your        and pay yourself or your beneficiaries as                                       building crafts, inc.                maxwell construction &
estate plan. Remember, advance                                 heirs under the specified thresh-    well.                                                                           burke & Schindler, p.l.l.                 Development
                                                                                                                                                                                                                         mcGill Smith punshon, inc.
planning is the key to any suc-                                old. (The estate tax is scheduled                                                                                    caeser creek/turtle creek Flea
                                                                                                                                                                                         markets                         mellott & mellott, p.l.l.
cessful endeavor.                                              for repeal in 2010, but Congress     Protect Your Family                                                             casco manufacturing Solutions        mercury instruments
                                                               must act to extend repeal beyond        No one likes to think about his or her                                       cassady, Schiller & Associates       midwestern plumbing Services
                                                                                                                                                                                    centennial, inc.                     mmG corporate communications
Asset Preservation                                that year.) Transfers to a spouse generally are   own mortality or the chance of becoming in-                                     charles F. Shiels and company        modern office methods
    It’s difficult to pinpoint any particular     not subject to estate tax. However, estate tax    capacitated. And that’s exactly why so many                                     cincinnati Growth partners, llc      mohawk machinery, inc.
age for starting to plan your estate. But, if     rules may make it difficult to escape paying      families are caught off guard and unprepared                                    cincinnati uSA regional chamber      monroe mechanical
                                                                                                                                                                                    cFo perspectives                     morgal machine tool co.
you begin now, you may be able to preserve        taxes when those same assets eventually pass      when incapacity or death strikes. You can                                       clark, Schaefer, hackett & co.       multi-craft litho, inc.
your assets for your spouse and other heirs       to your children or other heirs. By planning      protect your family and help ensure their                                       clark-theders insurance Agency       myers Y cooper co.
in a safe and tax-efficient way. A simple will    ahead and setting up a trust now -- before        financial future with a properly designed                                       clubessential, inc.                  national band & tag co.
                                                                                                                                                                                    commerce bank                        natorp’s, inc.
can efficiently transfer your assets; however,    you actually need it -- your children may be      trust. If you want to know more about the                                       cooney Faulkner & Stevens, inc.      neal’s Design remodel
you’ll have no guarantee that a reliable,         able to avoid paying hefty taxes on the assets    importance of setting up a trust before you                                     cors & bassett, llc                  northwestern mutual Financial
unbiased investment manager will succeed          they inherit from your spouse. Of course,         need it, please contact Fifth Third Private                                     Dalton roofing company
                                                                                                                                                                                                                         ohio Society of cpA’s
                                                                                                                                                                                    David Kiihnl
you. A flexible legal arrangement called a        professional guidance is essential before         Bank.                                                                           Derrick company, inc.                otS
trust may help to ensure that your family’s       acting.                                              Patrick Dolle is vice president and man-                                     Deye enterprises                     overly hautz company
                                                                                                                                                                                                                         paul hemmer companies
financial future is protected if you die or           Another way to reduce your potential          ager of the Wealth Management and Planning                                      Donald r. Frey & company, inc.
                                                                                                                                                                                    Down lite international
become incapacitated.                             estate tax is to remove assets from your          teams in the Fifth Third Private Bank. He                                       Dudley construction co.              pnc Advisors
    In your trust agreement, you legally          future estate by giving them away. The tax        can be reached at 513-534-4344 or Patrick.                                      Dwyer insurance Agency, inc.         porter, Wright, morris & Arthur, llp
                                                                                                                                                                                                                         positrol, inc.
transfer some or all of your assets to a trust-   law exempts small gifts with a gift tax annual                                                                   enterprise Vending
                                                                                                                                                                                                                         precision coil Spring
                                                                                                                                                                                    Family Wealth Advisory Group
ee’s care. You can make the transfer effective    exclusion. This tax break can be an opportu-            To ensure compliance with requirements imposed by the IRS, we             Feilhauer’s machine Shop, inc.       process construction, inc.
immediately, upon disability or death, or at      nity for making tax-free transfers over your      inform you that any U.S. tax advice contained in this communication             Ferno-Washington, inc.               progress Supply
                                                                                                    (including any attachments) is not intended or written to be used, and                                               prus construction
                                                                                                                                                                                    Fifth third bank
some future time. Carefully choose a trustee      lifetime. Each year, you can make gifts of        cannot be used, for the purpose of (i) avoiding penalties under the Internal                                         rendigs, Fry, Keilt & Dennis, llp
                                                                                                    Revenue Code or (ii) promoting, marketing or recommending to another            Findlow Filtration, inc.
with strong investment skills and experience      up to $12,000 each to as many individuals         party any transaction or matter addressed herein.                               First Financial bank                 requarth lumber
to handle substantial assets. Poor investment     as you want without gift tax consequences.               Fifth Third does not provide tax advice. Please consult your tax         Flottman printing
                                                                                                    advisor before making any decisions or taking any action based on this          Force control industries             rim & Wheel Service, inc.
decisions could mean a lower standard of          If your spouse joins with you, the tax-free       information.                                                                                                         rolling Acres mobile homes
                                                                                                                                                                                    Frankenberg Group
living for your spouse or a reduced in-           amount doubles to $24,000, per person, per               Fifth Third Private Bank is a division of Fifth Third Bank offering
                                                                                                    banking, investment and insurance products and services. Fifth Third            Funch lumber company                 roly poly
                                                                                                                                                                                                                         rosselot Financial Group, inc.
heritance for your beneficiaries. When you        year. Also, up to $1 million total in otherwise   Bancorp provides access to investments and investment services through          Gardner publications
                                                                                                    various subsidiaries, including Fifth Third Securities. Fifth Third             George Steel Fabricating             rough brothers
choose a professional asset manager as your       taxable gifts can be made without incurring       Securities is the trade name used by Fifth Third Securities, Inc., member       Ghent manufacturing                  rumpke consolidated companies
trustee, you’ll feel secure knowing that your     gift tax.                                         NASD/SIPC, a registered broker-dealer and registered investment advisor
                                                                                                                                                                                    Goering & Goering                    Scherzinger corporation
                                                                                                    providing brokerage and investment advisory services. Investments and                                                Sequent
family’s finances will be carefully managed,          You can turn a sizable gift into a tax-ad-    Investment Services:                                                            Gold Star chili, inc.
                                                                                                                                                                                                                         Singer Wallcovers
                                                                                                           Are Not FDIC Insured • Offer No Bank Guarantee                           Golden pond resources
no matter the age, health, or financial experi-   vantaged source of income by setting up a               May Lose Value • Are Not Insured By Any                                   Gordon construction, inc.            Skidmore Sales & Service
ence of your heirs.                               charitable remainder trust. Simply set up the           Federal Government Agency                                                 Gradison mcDonald Financial          Star moving and Storage
                                                                                                          Are Not A Deposit                                                                                              Steinhauser, inc.
                                                  trust during your lifetime, or in your will,            Insurance products made available through
                                                                                                                                                                                    Graeter’s, inc.
                                                                                                                                                                                                                         Sur-Seal Gasket co.
                                                                                                          Fifth Third Insurance Agency, Inc.                                        Graydon head & ritchey, llp
                                                                                                                                                                                    Greater cincinnati chamber           tapke Asset management, llc
                                                                                                                                                                                         of commerce                     tappan properties, inc.
   Professionally Speaking, Continued from Page 1B                                                                                                                                  Grote industries                     the Angus Group ltd.
                                                                                                                                                                                    h. J. benken Greenhouses             the Greater cincinnati Foundation
   A participation charter element answers          is that without a clearly defined policy        after the fact.                                                                 haberer investment Advisors          the honey baked ham co. of ohio
                                                                                                                                                                                    hamilton caster & manufacturing      the lumley Group, inc.
   the following questions: (1) How do we           statement on participation, whatever               I am sure you can think of examples                                               co.                             the lyon Group
   decide who can join the firm? Who is             decision is made with respect to the            of potential conflicts arising from the                                         hills Developers                     the malibu Group
                                                                                                                                                                                    hilltop basic resources, inc.
   preferred? Family? (2) What business             family applicant, the potential for mis-        other issues raised above. Who can                                              hofbrauhaus
                                                                                                                                                                                                                         the Scheller bradford Group
                                                                                                                                                                                                                         the Verdin company
   conditions are necessary for additions?          understanding and hurt feelings is great.       join? When can they join? What do                                               holland communications               the W. Group
   (3) What preparation is required? (4)            Take for example a situation where a            they need to do in order to qualify for                                         horan Associates inc.                the Walt lunsford Financial
                                                                                                                                                                                    huber lumber company                      Advisory Group of Advest, inc.
   How are titles and authority deter-              young niece of a family firm owner              a position? What title will they have?                                          hudepohl construction                total Quality logistics
   mined? (5) What if a family employee             applies for a job in the sales department       What happens if they don’t work out?                                            huntington bank                      towne properties, inc.
                                                                                                                                                                                    imbus roofing company                tucker homes
   doesn’t work out? And (6) Are non-               and is turned down. The actual reason is        These are all real issues that require                                          intrinzic marketing & Design         university of cincinnati
   blood family members allowed in the              because the owner’s philosophy is busi-         forethought and clear and consistent                                            invesmart, inc.                           Alumni Association
                                                                                                                                                                                                                         university of cincinnati
   business?                                        ness first, and their policy is to add per-     communication to minimize the po-                                               J & n Auto electric
                                                                                                                                                                                                                              college of business
                                                                                                                                                                                    Jeff Wyler Dealership Group
       As discussed in a previous column,           sonnel only when there is a need. Two           tential for personal feelings being hurt                                        Joseph Decosimo & co., pll
                                                                                                                                                                                                                         university of cincinnati Foundation
                                                                                                                                                                                                                         uSi midwest
   most family firms have not clarified nor         weeks later, the niece’s cousin applies for     when decisions are made. Just as with                                           John D. Dovich & Associates, llc
                                                                                                                                                                                                                         Valcom enterprises, inc.
                                                                                                                                                                                    John r. Jurgensen co.
   communicated the succession process;             a job in accounting and is hired, simply        succession, the famous advertisement                                            Johnson investment counsel
                                                                                                                                                                                                                         Valley interior Systems, inc.
                                                                                                                                                                                                                         Verst Group logistics
   most have not communicated the                   because he is the best candidate and the        that says, “pay me now (a little) or pay                                        Johnson nash metal products
                                                                                                                                                                                                                         Viox Services
   answers to the participation questions           firm needs an accountant. Without a             me later (a lot)” is applicable.                                                J.t.m. FoodGroup
                                                                                                                                                                                                                         Vonlehman & company
                                                                                                                                                                                    Justice & Young Advertising &
   to their families. You may ask why ad-           clear policy, the niece may feel rejected,         In the next article, I will discuss an-                                           public relations                Wardway Fuels, inc.
                                                                                                                                                                                    Kahny printing, inc.                 Weld plus
   dressing these questions is important to         discriminated against, and personally           other important element in the Family                                                                                William cochran & Associates
                                                                                                                                                                                    Kaiser Foods
   the success of the family business. Why          offended. This can be the start of a ma-        Charter. In the meantime, be thinking                                           Kaplan litwin Kaplan & Associates    Wm. Kramer & Son, inc.
                                                                                                                                                                                                                         Zone communication
   not just address them when a family              jor family conflict. Although clearly this      about these participation questions. You                                        KDm pop Solutions Group
                                                                                                                                                                                    Keating, muething, Klekamp, p.l.l.
   member applies for a job? The reason             is not personal, it is hard to convey that      (and your family) will be glad you did!
                                                                                                                                        Finding Solutions. Sharing Experiences.
a Supplement to the Business Courier                                                                                                                                                                          JunE 15, 007 3B

Take Responsibility for Funding Your Retirement
You’ll be Wealthier for It
By trey r. isgrig, CPa , the ohio Society of CPa’s

    Far too many Americans are still             proach to the process.                                       return of a portfolio is critical to stay-                tax free. If income limitations make
counting on pensions as a retirement               Understanding the following retire-                        ing the course.                                           you ineligible to contribute to a Roth
safety net. A recent poll conducted for          ment savings principles is the first step.                      Learn about your employer’s pen-                       IRA, consider making non-deductible
the American Institute of Certified                                                                           sion or profit-sharing plan, if one                       contributions to a traditional IRA. You
Public Accountants (AICPA)                                  Steps to Prepare for                              exists. Understand what your benefit                      can convert the plan to a Roth IRA in
found that 48 percent of                                    Retirement                                        is worth, what the vesting schedule is                    2010 when the Roth conversion income
non-retired adult Americans                                     Know your retirement                          and confirm your beneficiary designa-                     limitations expire.
still expect to retire with a                               needs. Experts estimate that                      tions. Most employers will provide                           Don’t dip into your retirement sav-
pension. In reality, many                                   you’ll need 70 – 90 percent of                    an individual benefit statement if you                    ings unless it’s an absolute necessity.
companies are moving away                                   your pre-retirement income                        request one. Before you change jobs,                      You could potentially owe penalties or
from defined benefit pension                                to maintain your standard of                      find out what will happen to your pen-                    lose other tax benefits if you withdraw
plans, which are primarily                                  living when you stop work-                        sion and if your spouse will be entitled                  funds early. If you change jobs, con-
employer funded, toward de-                                 ing. The earlier you start                        to benefits from your plan.                               sider rolling over your savings directly
fined contribution plans funded mostly           saving, the more time your money has                            Contribute to your 401(k). If your                     into an IRA or your new employer’s
by employee contributions.                       to grow.                                                     company offers such a plan, contrib-                      retirement plan.
    The Pension Protection Act of                    Determine the amount of capital re-                      ute the maximum amount you are                               Get professional counsel. The best
2006 is the most significant legislation         quired to provide the target retirement                      able each pay period. At a minimum,                       way to plan for retirement is to consult
passed since 1974, affecting retirement          income. A good rule of thumb to target                       contribute enough to get the company                      a professional who specializes in invest-
plans for both employers and employ-             is saving between $200,000 – $250,000                        match, if one is offered, since this is free              ment and retirement planning, such as
ees. The goal was to strengthen the              for every $10,000 of annual retirement                       money. Contributions to 401(k) plans                      a certified public accountant or certi-
federal pension insurance program,               income desired. For example, if you                          are made pre-tax, which reduces your                      fied financial planner. An expert can
protect company pension plans and,               want $40,000 per year at retirement                          annual adjusted gross income and the                      help you outline your goals and provide
hence, employees who participate in              over and above social security benefits,                     amount of income tax you pay each                         options to consider as you look to
them.                                            look at a retirement savings goal of                         year. If you start early, you can really                  maximize the one life you have to live.
    It’s also unlikely that consumers can        between $800,000 and $1,000,000.                             benefit from the advantage of tax-de-                        Above all, don’t procrastinate. It’s
count on social security benefits to                 Establish a target rate of return                        ferred savings.                                           easy to put off saving when you’re faced
contribute significantly to retirement           and know the downside risk of your                              Contribute to your Individual Re-                      with month-to-month expenses, but
incomes. Therefore, each worker must             investment portfolio. Often, people do                       tirement Account (IRA). You can put                       you can’t afford to wait. Ultimately, it’s
take personal responsibility for funding         not understand the expected return                           up to $4,000 a year ($5,000 if you’re                     up to you to save enough to become
their futures. Unfortunately, the pros-          and, just as importantly, the historical                     50 or older) into a traditional IRA or                    financially independent.
pect of building wealth for retirement is        downside risk of their current invest-                       Roth IRA. There are separate laws for                        Trey Isgrig owns Isgrig Capital As-
a daunting task for many people. They            ments. It’s easy to stay invested when                       each governing how contributions and                      set Management, LLC, Cincinnati, an
often don’t know how much they need              the market goes up, but they look                            withdrawals are taxed. Traditional IRAs                   independent, fee-only investment and
to save or how and where to invest to            to make changes when the market                              hold pre-tax dollars that are subject                     financial advisory services firm, and is
meet their financial goals. Therefore,           drops—changes which can be devastat-                         to ordinary income taxes when with-                       a member of The Ohio Society of CPAs.
many people delay saving and never               ing to long-term success. Understand-                        drawn. Contributions to Roth IRAs are                     For more money management tips, visit
develop a long-term, disciplined ap-             ing the downside risk and expected                           made with after-tax dollars that grow           

                                                                                                                                                                                                 Be Sure to Watch
                                                                                    Publisher’s note:
                                                                                                                                                                                                  Fifth Third Bank
  Goering Center
                                                                                    the Family Business report is an advertising supplement to the
                                                                                    Business Courier in cooperation with the Goering Center.                                                           Hometown
                                                                                                                                                                                                 Business Weekly
  For Family & Private Business                                                     the Family Business report
                                                                                    Sidney L. Barton, Ph.D.      W. Kent Lutz            m. B. Hammond                                       sundays at
                                                                                                                                                                                         11am on WCPo.
                                                                                    Executive Director           Director                Editor

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                                                                                   Goering Center advisory Board

  John B. Goering         Doug Bolton                David Deye                     James Funch, Jr.          Paul Hemmer, Jr.               David Kiihnl             Albert Reilly                        Kim Speed
  Chairman                Business Courier           Deye Enterprises               Funch Lumber Company      Paul Hemmer Companies          ASAP Event Advertising   Rough Brothers, Inc.                 Kaiser Foods, Inc.
  Sidney L. Barton        Doug Cleaves               Barry Elkus                    Dean R. Gaudin            Alan Hendy                     Tom Klinedinst           Ron Rosselot                         John Steele, Jr.
  Executive Director      PNC Bank                   Roly Poly Rolled Sandwiches    OTS                       Neal’s Design Remodel          USI Midwest              The Rosselot Financial Group, Inc.   Hilltop Basic Resources, Inc.
  W. Kent Lutz            Bob Coughlin               Louis Fender                   Anna Guido                Dan Heyd                       Don Mellott, Jr.         Mark Signorelli                      Jay Wertz
  Director                Paycor                     KeyBank                        Goering Center            Graydon, Head & Ritchey        Mellott & Mellott        Cincinnati Growth Partners           Johnson Investment Counsel
  Will McIntosh           Lou DeBlasio               Tom Flottman                   Mary Beth Hammond         Bryan Holland                  Ken Natorp               Mike Sipple, Sr.                     Michael Whittaker
  Dean                    First Financial Bank       Flottman Company, Inc.         Goering Center            Holland Communications         Natorp’s, Inc.           Centennial, Inc.                     Clark, Schaefer, Hackett & Co.
  Keith Baldwin           Thom Deutsch               James Foley                    Michael Heaton            T.D. Hughes                    Chris Ramos              Melissa Kline Skavlem
  Baldwin Gilman LLC      Deutsch Realty             Grote Enterprises, LLC.        Enterprise Vending        LaRosa’s, Inc.                 Fifth Third              Gardner Publications
                                                                                                                   Finding Solutions. Sharing Experiences.
B JunE 15, 007                                                                                                                                   a Supplement to the Business Courier

Is Your Employment Agreement
Subject to a 20% Penalty Tax?
By lyndsey r. Cater, Graydon Head & ritchey LLP

    In 2005 Congress added a                                 The answer is because after           the separation pay must be paid not later       date or be triggered by one of the following
new provision to the Internal                                much anticipation (at least for       than December 31 of the second calendar         events: separation from service, death, dis-
Revenue Code (section 409A)                                  those of us that live and breath      year following the year of separation. This     ability, change in control of the employer/
that implements a penalty tax on                             employee benefits) the IRS has        restriction is particularly important for       service provider or an unforeseeable emer-
nonqualified deferred compen-                                recently issued final regulations     publicly traded companies because section       gency. Each of these five allowable trig-
sation, unless it is structured to                           and, more importantly, because        409A requires that separation payments          gering events is specifically defined in the
meet certain requirements. You                               the deadline for revising agree-      made to key employees (generally the            regulations, and plans must be amended to
may not think this provision will                            ments for compliance with the         company’s 50 most highly compensated            make certain that these distributable events
have any effect on you or your                               new rules is December 31, 2007.       officers) be delayed for six months after the   comply with these definitions. For instance,
company at first glance because you do not       Failure to comply with section 409A or to         employee’s separation from service.             even though an agreement provides for
have any nonqualified deferred compensa-         fit within one of the exceptions will result in       Another helpful exception is the short-     distribution on disability or a separation
tion agreements. However, your assump-           the employee being subject to income tax          term deferral carve-out, which are amounts      of employment, if the agreement defines
tion may be incorrect because these new          retroactive to the time the compensation          that are paid by March 15 of the year im-       disability more broadly than the regulations
rules define the term “nonqualified deferred     was earned and vested, plus an additional         mediately following the year the right to the   permit, it would fail 409A and be subject
compensation” very broadly as any arrange-       20% penalty tax and interest, instead of          payment is no longer subject to a substantial   to taxation upon vesting along with a 20%
ment under which compensation for cur-           the amounts being taxed when they are             risk of forfeiture.                             penalty tax and interest charges. Finally, the
rent services is payable in a later year. This   received by the employee.                             Deferred compensation arrangements          amounts may not be set aside in an offshore
definition impacts many types of agree-                  The regulations do carve out certain      that do not qualify for an exception must       trust for purposes of making distributions.
ments that were not previously thought of as     plans from deferred compensation. Some            comply with four broad conditions. First,               The rules surrounding section 409A
nonqualified deferred compensation agree-        of the exceptions are blanket exceptions,         the deferral elections by the employee or       are complex and voluminous. If you have
ments. These plans include: employment           such as any compensation that is deferred         independent contractor must be made             any compensation arrangement that could
agreements, severance agreements, annual         under a qualified plan (e.g., 401(k) plan).       before the beginning of the year that the       potentially be subject to section 409A and
and long-term bonus and incentive plans,         Other exceptions are more restrictive.            services are performed. There is an excep-      the related tax, you should have a legal
change in control agreements, split dollar       For example, the regulations provide an           tion for performance-based compensation         review of your agreements for compli-
life insurance arrangements, restricted stock    exception for some separation pay arrange-        (e.g., commissions) where the deadline is six   ance. While the deadline for amending the
units, section 457(f) plans, stock option and    ments. However, compensation will only be         months before the end of the performance        agreements is not until December 31, the
equity award plans, commission programs          considered “separation pay” if the payments       period.                                         plans must already be operating in good
and post-employment reimbursements.              are made due to an involuntary separation             Second, the time and manner, or form        faith compliance with these rules. There-
        Your second thought while read-          from service. Only separation pay up to the       of payment, in which the deferred compen-       fore, now is the time to have your deferred
ing this article may be if this rule has been    lesser of two times (i) the employee’s salary     sation is going to be distributed must be       compensation agreements reviewed and
around since 2005 and it hasn’t affected         or (ii) the section 401(a)(17) limit (which       specified at the time of deferral. Third, the   determine the necessary steps to bring
me yet, why should I care about it now?          is $225,000 in 2007) is exempt. Further,          distribution must either begin on a specified   agreements into compliance.
                                                                                                      Finding Solutions. Sharing Experiences.
a Supplement to the Business Courier                                                                                                                                                JunE 15, 007 5B

Congratulations to the Next
Generation Institute Class of 2007
By Mary Beth Hammond, Goering Center

   The eighth graduating class of                             The Next Genera-
the Next Generation Institute was                         tion Institute Class
honored May 8, 2007 at a luncheon                         of 2008 begins Oc-
at the Kenwood Country Club. The                          tober 9, 2007. If you
Institute helped prepare this next                        would like additional
generation of family business own-                        information regard-
ers for their unique roles in manag-                      ing this program,
ing their family firms. The gradu-                        please contact Kent
ates participated in eight sessions      Lutz, Director or Mary Beth Ham-
over an eight-month period covering      mond, Program Manager at 513-
topics such as Family Strategic Plans,   556-7185. Visit our web site at www.
Communications, Leadership/Own- for more information
ership Succession, Business Valua-       about the Institute.
tion, Legal and Tax Structures, Board
of Advisors/Directors, and Estate
                                                                                  Back row left to right: Matt Frey, Todd Beamer, Mark Signorelli, Mike Sipple, Jr., Anu Bansal, Randy Maxwell, Sid Barton, Corey
                                                                                  Farrens, Stephen Farrens
                                                                                  Middle row left to right: Nick Fucito, Mary Beth Hammond, Will Housh, Todd Hosea, Thom Deutsch, Phil Faessler, Melissa
                                                                                  Macejko, Chase Kohn
                                                                                  Kneeling left to right: Phil Conklin, Kent Lutz, Anna Guido

  Congratulations to Our 2007 Graduates:
  Anu Bansal, Bansal Construction Co.
  Todd Beamer, Beamer Brothers Trucking Co.
  Phil Conklin, R. W. Conklin Steel Supply, Inc.                                  next Generation institute
  Phil Faessler, Progress Supply Inc.                                             registration and referral Form
  Corey Farrens, Vermeer of Southern Ohio
  Stephen Farrens, Vermeer of Southern Ohio
  Matt Frey, Donald R. Frey & Co., Inc.
  Nick Fucito, Tom Fucito, Inc. (LaRosa’s Mt. Washington)                         I am interested, please contact me.
  Todd Hosea, Hosea Project Movers
  Will Housh, Monroe Mechanical, Inc.
  Chase Kohn, Glendale Place Care Center
                                                                                  Name: ______________________________________________________________
  Melissa Macejko, Weld Plus, Inc.
  Randy Maxwell, Maxwell Construction
                                                                                  Company: ___________________________________________________________
  Mike Sipple, Jr., Centennial, Inc.
  Dennis Smith, Paper Products Co.                                                Address: ____________________________________________________________
  Christopher Wilson, Midwestern Plumbing Service
                                                                                  City/State/Zip: ________________________________________________________

  Thank You to our Class of 2007
  Facilitators and Steering Committee:                                            Phone: ____________________________ Fax:______________________________

                                                                                  e-mail: ______________________________________________________________
  Keith Baldwin, Baldwin Gilman LLC
  Thom Deutsch, The Lyon Group
  Joe Faessler                                                                    W. Kent Lutz, Director
  Dan Heyd, Graydon, Head & Ritchey                                               Goering Center for Family and Private Business
  Mike Hirschfeld, Graydon, Head & Ritchey                                        University of Cincinnati,
  Chris Ramos, Fifth Third Bank                                                   P.O. Box 210228,
  Mark Signorelli, Cincinnati Growth Partners                                     Cincinnati, Ohio 45221-0228
  Tony Schweier, Clark, Schaefer, Hackett & Co.
  C.Michael Whittaker, Clark, Schaefer, Hackett & Co.                             Telephone: (513) 556-7185 • Fax: (513) 556-7090
                                                                                  e-mail: goering@uc.ed
                                                                                                        Finding Solutions. Sharing Experiences.
6B JunE 15, 007                                                                                                                                   a Supplement to the Business Courier

Heir Today, Gone Tomorrow:
Incentives Sometimes Used in Trust Documents
By louis e. Valker, PnC Wealth management.

    Billionaire philanthropist Warren           Incentives in a will or trust can        substance abuse. For these situations,                   Overly emotional decisions in creat-
Buffett’s well-known philosophy on           motivate beneficiaries to follow the        “disincentives” in trusts are sometimes                  ing an estate plan are as inadvisable
leaving money to his adult children          grantor’s wishes and instill certain        used to motivate beneficiaries to avoid                  as “knee-jerk reactions” by parents in
is to leave “enough money                               values. With incentive trusts,   personally destructive behaviors by re-                  disciplining a child.
so that they would feel they                            individuals can stimulate        quiring such items as drug screenings                       Along these lines, no affluent parent
could do anything, but not                              their heirs to pursue ben-
so much that they could do                              eficial work and make a                       62 percent believe it is important
nothing.”                                               valuable contribution to
    PNC Wealth Manage-                                  society as opposed to using                      that each generation take
ment’s Wealth and Values                                the money to fund a lax or
Survey findings suggest that                            unprincipled lifestyle.                   responsibility for creating its own wealth
an overwhelming number of                                  Most often, trusts require
affluent individuals agree with Buffett,     recipients attain a certain age under
but revealed an interesting discon-          the theory that maturity corresponds        or avoiding arrests. In these instances                  wants a child to be destitute, so pro-
nect. The survey shows that while 62         with financial responsibility. Of those     the trust grantor seeks to prevent a                     viding for their needs while ensuring
percent believe it is important that         attaching stipulations to their will or     beneficiary from entirely dropping out                   that the inheritance is not misused is
each generation take responsibility          trust, the survey revealed: 77 percent      of society or to motivate him or her to                  an advisable balance of objectives.
for creating its own wealth, only 30         have earmarked funds to be used for         work rather than live solely off of the
percent have written instructions for        education; 46 percent have identified       inheritance.
heirs to meet specific requirements to       funds to be used for basic needs (such         These approaches are not without                          Louis E. Valker is Vice President and
receive their inheritance.                   as housing); 28 percent have specified      controversy.                                             Director of Trust and Planning for PNC
    Like Buffett, minus the billions,        funds for business or career-related ex-       Some view such stipulations as forc-                  Wealth Management in Cincinnati,
the affluent want their legacy to be a       penses and 16 percent have identified       ing values and behaviors on beneficia-                   which provides a wide array of financial
positive one. To achieve their goal,         funds to be used for specific charitable    ries from the grave. Certainly, wealth                   planning and services to high net worth
however, more need to take steps to          donations                                   advisors and attorneys must counsel                      clients.
ensure their heirs do not have unfet-           Often, a benefactor may believe that     their clients to carefully consider all of
tered access to their money, according       an heir is incapable of fiscal respon-      the potential consequences of impos-
to PNC’s survey.                             sibility based on a criminal record or      ing any restrictions in a will or trust.

Goering Center Graduates Inaugural Class
of the Leadership Development Institute
   The Goering Center partnered with Di-       workshops and practical applications, our
ane Egbers and Leadership Excelleration        graduates gained a greater self-awareness
this year to present the Leadership De-        and learned how to create a work place
velopment Institute. LDI is a challenging      where people want to do their best.
and interactive program designed to ad-
dress the unique challenges faced by those        Fall classes for the Leadership Develop-
leading a family business and to help          ment Institute are forming now. For more
maximize your effectiveness as a leader        information, call Mary Beth Hammond at
so you can maximize the performance of         the Goering Center – 513-556-7185.
your organization. Through interactive                                                                       Standing left to right: Jason Randolph, Trevor Steinhauser, Jonathan Theders, Joe Besl, Robert Graeter,
                                                                                                             Jim Besl, Randy Merten, Jason Beatty, Ryan Levin, Matt Johnson, Kent Lutz
                                                                                                             Sitting left to right: Anna Guido, Tara Halpin, Diane Egbers, Jenny Beamer

                                           Congratulations to Our 2007 Graduates:
                               Jenny Beamer, Beamer Brothers Trucking • Jason Beatty, Beamer Brothers Trucking
                                                       Jim Besl, Force Control • Joe Besl, Force Control
                                                    Tim Clark, H. J. Benken • Bob Graeter, Graeter’s, Inc.
                                    Tara Halpin, Steinhauser, Inc. • Will Housh, Monroe Mechanical Service, Inc.
                                     Stefan Hunter, Down-Lite International • Matt Johnson, Chem Instruments
                            Ryan Levin, Caeser Creek/Turtle Creek Flea Markets • Randy Merten, Tappan Properties
                      Jason Randolph, Clark Theders Insurance Agency • Melissa Kline Skavlem, Gardner Publications
                           Trevor Steinhauser, Steinhauser, Inc. • Jonathan Theders, Clark Theders Insurance Agency
                                                             Josh Werthaiser, Down-Lite International
                                                                                                                                   Finding Solutions. Sharing Experiences.
a Supplement to the Business Courier                                                                                                                                                                JunE 15, 007 7B

 A Community Celebration of
 Family Business Success
       The Goering Center for Family & Private Business and the University of Cincinnati are pleased to announce the 8th Annual

                                      Tri-State Family Business
                                         of the Year Awards                                          Presented by
                                                       Tuesday, August 28, 2007 from 5:30 to 9 p.m. at Music Hall
                                                                 Master of Ceremonies: Brian Patrick
 Please plan to join many of the leading Tri-State area family firms for dinner and an awards ceremony recognizing the vital role that family businesses play
 in our local community. This community-wide celebration will honor twelve award-winning companies for their leading achievements in the areas of:
                                                  Innovation • Community Service • Succession Planning
                                          Strategic Planning • Communication • Estate and Financial Planning
                                                          Make plans now to attend this exciting event.
                  If you would like more information about this event, or to make a reservation, simply call the Goering Center at (513) 556-7185.

                         Congratulations to the 2007 Family Business of the Year Award Nominees!
 A&A Safety                           Bramkamp Printing Co.                 Dugan & Meyers                   J & N Auto Electric                    Nieman Plumbing Co.                 Smyth Automotive, Inc.
 A&P Technology, Inc.                 Bray Marine, Inc.                     Eagle Coach Company              Jeffrey R. Anderson Real Estate, Inc   Nolte Precise Manufacturing, Inc.   Snooty Fox
 Aberdeen Express                     Bromwell’s                            Eagle Custom Homes               JFK Window                             North American Properties           Spectrum, Inc.
 Ace Doran Hauling & Rigging Co.      Broshear Contractors, Inc.            Ellenbee Leggett, Inc.           Joe Lasita & Sons, Inc.                Norwood Hardware                    SS&G Financial Services, Inc.
 Ackermann Enterprises, Inc.          Budco Group, Inc.                     Empower Media Marketing          John Nolan Ford, Inc.                  Norwood Sash & Door                 ST Media Group
 Active Electric                      Buddy Rogers Music                    Enerfab, Inc.                    John R. Jurgensen Company              Ohio Valley Flooring                Standard Textile Co. Inc.
 Adeeb Sons, Inc. (Skyline Chili      Burd Brothers Inc.                    Engineering Excellence           Johnson Nash Metal Products, Inc.      Oil Distributing Co.                Steinhauser Inc.
   Restaurants)                       Busken Bakery                         Faigle Jewelers                  Joseph Berning Printing                Osborne Coinage Co. Inc.            Stevenson, The Color Co.
 Advanced Office Systems, Inc.        C & L Auto Body and Auto Service      Fawn Confectionery Inc.          JP Flooring Co.                        Osterwisch Electric Co.             Stewart Filmscreen Corp.
 Advertiser Printers, Inc.            C.E. Power Solutions                  Faxon Machining                  JTM FoodGroup                          Paul Hemmer Companies               Super Systems
 AE Door and Window                   C.W. Zumbiel Company                  Fecon, Inc.                      Jungle Jim’s                           Paul Michels & Sons                 Superior Label Systems Inc.
 Aero-Fulfillment Services            Cameratta Properties                  Federal Equipment Company        Kahny Printing                         Peck, Hannaford, & Briggs           T. L. Krieg Offset
 AIC Contracting, Inc./Axis           Casco Manufacturing Solutions         Fenton Rigging Co.               Kendle International, Inc.             Penn Station                        Tape Products Co.
 Akers Packaging Group                Castellini Company                    Ferguson Metals, Inc             Kerry, Inc                             Perfect North Slops, Inc.           Tedia Co., Inc.
 Al Neyer, Inc.                       Cast-Fab Technologies                 Ferno-Washington Inc.            Kinder Garden School Cincinnati, LLC   Pilot Contracting                   The Bistro Group
 Alternative Solutions Homecare       CDS Associates                        Force Control Industries         Klosterman Bakery                      Planes Moving & Storage             The Drees Company
 American Micro Products, Inc         Centennial, Inc                       FORTE                            Koenig Equipment                       Platinum Marketing Group            The Hollaender Manufacturing, Inc
 American Paper & Plastic, Inc.       Champion of Cincinnati                Freeman Company                  Kutol Products Company                 Porter Precision Products           The Mutual Manufacturing & Supply
 American Printing                    Charles Campbell & Associates         Frey Electric                    L & I Group                            Positrol                               Co.
 Ammon Wholesale Nursery              Chester Labs Inc.                     G & G Manufacturing Co           Lehr’s Meats                           Powers Lawn & Garden LLC            The Perfection Group, Inc.
 Anchor Flange Company                Cimx                                  General Tool, Co.                Leonhardt Plating                      Prestige Audio Visual, Inc.         The Shepherd Chemical Company
 Anthony Cole Training Group          Cincinnati Belting and Transmission   Ghent Manufacturing, Inc.        Libby Perszyk & Kathman, Inc.          Prestige Lawn Care, Inc.            The Verdin Company
 Apollo Heating & Air Conditioning      Company                             Gilkey Window Co.                Lithko Restoration Technology          Priority Dispatch                   The Witt Co.
 Aquatic & Garden Décor               Cincinnati Gasket Packing &           Glockner Enterprises             Loveland Pet Products                  Progress Supply, Inc.               Thompson, Hall, & Jordan Funeral
 Arling Lumber Company                  Manufacturing                       Golden Eaglel Extrusions, Inc.   Lucking Advertising Products, Inc.     Pure Romance                           Homes
 Art’s Rental Equipment               Cincinnati United Contractors         Gorilla Glue                     Lykins Companies                       Q. C. Industries, LLC               Tool Sales & Service
 Assistance in Marketing              Cindus Corporation                    Gray & Pape, Inc.                M. Bohlke Veneer Corporation           Queen City Supply Co.               Total Quality Logistics
 Auger Metal Products                 CJ Krehbiel Company                   Griffin Industries, Inc.         MAGNA Machine Company                  R W Conklin Steel                   Towne Properties
 Auto Body Panels, Inc.               Clark Theders Insurance Agency        Grippo Foods Inc.                Matandy Steel                          R. J. Beischel Co.                  Trauth Homes, Inc and Trauth
 Aveda Fredric’s Corporation          Clayton L. Scroggins Associates       Gutter Topper, LTD               Matdan Corporation                     R.L. Industries                        Properties, LLC
 Bachman’s Inc.                       Clermont Steel Fabricators, Inc.      Habegger Corp.                   Matlock Electric                       Rack Processing Co.                 Tri City Insurance
 Baker Concrete Construction, Inc.    Clubessential LLC                     Haglage Construction, Co.        McCabe Lumber                          Ralph J. Stolle Company             TSS Technologies
 Barleycorn’s                         Coppage Construction, Inc.            Haney PRC                        McCluskey Chevrolet Inc.               Ray St. Clair Roofing, Inc          Turpin Farms
 Basco Manufacturing Co.              CopyPlex                              Hart Industries                  McGregor Metalworking Companies        RDI Marketing Sys.                  Universal Contracting Corporation
 Batesville Products Inc. (BPI)       CORE Resources, Inc.                  Hart Productions                 McSwain Carpets Inc.                   Recker & Boeger                     Valley Interior Systems
 Bavarian Trucking Co., Inc.          CTL Aerospace Inc.                    Henn Plumbing, Inc               Mees Distributors                      Reliable Castings Corp.             Verst Group Logistics
 Baxter Burial Vault Services, Inc.   D.A.G. Construction Co., Inc.         Hensley Industries               Megen Construction                     Republic Wire, Inc.                 Viox & Viox
 Bayer Becker                         D.C. Morrison Co.                     Hern Marine                      Michelman, Inc.                        Richard Goettle, Inc.               Waltz Business Sytems
 Beckfield College                    Dalton Roofing, Inc.                  Hicon, Inc.                      Mills Fence Co.                        Richards Industries Inc.            Welch Sand & Gravel
 Berghausen Corp.                     Danis Building Construction Co.       Hillandale Communites, Inc.      MMG Corporate Communications Inc.      Robbins, Inc.                       Wendling Printing
 Berman Printing Co.                  Deerfield Construction                Hillenbrand Industries, Inc.     Modern Office Methods                  Ron’s Roost, Inc.                   Willard Industries Inc.
 Besi, Inc.                           DEI, Inc.                             Hills Real Estate Group          Monroe Mechanical                      Rough Brothers Inc.                 Willow Creative Group
 Besl Transfer Co.                    Delhi Flower & Garden Center          Hoge-Warren-Zimmerman Co.        Montgomery Inn Inc.                    Rumpke Consolidated Companies       Winelco Inc.
 Big Chief, Inc.                      Denier Electric Co., Inc.             Holiday Homes Inc.               Morris Technologies                    Scotti’s Italian Restaurant         Wm. Kramer & Son, Inc.
 Blue Grass Provision Company         Derrick Company                       Holland Communications           Multi-Craft Litho                      Servatii Pastry/Choice Harvest      Wulco, Inc
 Bob Sumerel Tire Co. Inc.            Dixon Builders                        Home City Ice Company            MVM, Inc.                                 Bakehouse                        Zicka Walker Homes
 Bobcat Enterprises, Inc              Donald R. Frey & Co.                  Hosea Worldwide                  Natorp’s                               SFA Architects Inc
 Bosma Machine & Tool Corporation     Down-Lite International, Inc.         Huff Realty, Inc.                Neal’s Design Remodel                  Signal Office Supply
 BradiCorp. LLC                       Dualite Corporation                   ILSCO                            Neyra Industries, Inc                  Sleepcare Diagnostics
                                                                                                                     Finding Solutions. Sharing Experiences.
8B november 17, 006                                                                                                                                   a Supplement to the Business Courier

         Hometown Business Profile.
Under Duress, Steinhauser Siblings
Learn To Run Family Business
By anna guido, Goering Center
    Inheriting the family business isn’t sup-      president, Robert Steinhauser learned he had         One of the single best pieces of advice the   improve our relationships with our employ-
posed to happen tragically. But it did for         a brain tumor. The news was shocking, to         board gave Tara and Trevor was to join the        ees and our customers.”
Tara and Trevor Steinhauser.                       say the least, and put the family in “complete   Goering Center for Family & Private Busi-             Tara and Trevor continue to remain ac-
    The untimely death of their father last        panic mode,” said Trevor, vice president,        ness, known for its expertise in Succession       tive in Goering Center programs and events
August made Tara and Trevor the fourth-            who joined the ranks after his graduation        Planning.                                         and have shared their story more than once,
generation owners of their fam-                                 from the University of Kentucky         Tara and Trevor’s involvement with            including at the May 2007 Next Generation
ily business much sooner than                                   in 2001.                            the Goering Center started with the Next          Institute graduation.
expected.                                                           Tara and Trevor, along with     Generation Institute, the center’s highly             In retrospect, Tara said taking over her
    Tara, 34 and Trevor, 29, said                               their brother Tyler, pulled         interactive flagship program that covers a        beloved father’s job so soon after learning of
their dad Robert structured the                                 together to support their mom,      comprehensive curriculum of issues unique         his cancer was gut-wrenching.
company so it could run without                                 Polly, their dad, and each other    to family firms.                                      But with help from Steinhauser, Inc.’s
him.                                                            during what would be the most           Tara said the Next Generation Institute       board of directors, the Goering Center, and
    “My dad put his blood, sweat                                difficult time in their lives.      also served as a “kind of support group.”         through Robert Steinhauser’s savvy invest-
and tears into the company and                                      Symptoms of Robert Stein-           “We totally poured our hearts out,” she       ment in a new printing press, Tara and
took a lot of risks,” Tara said.                   hauser’s illness started just shortly before     said. “Everybody was so comfortable open-         Trevor were able to “rise above it.”
    When transitioning into their new lead-        his cancer diagnosis but progressed quickly      ing up to people they never met before.”              This past year, under their leadership,
ership roles at Steinhauser, Inc. – the family’s   afterward, which didn’t give Tara and Trevor         Trevor said the Next Generation Institute     Steinhauser, Inc. saw revenue grow more
100-year-old printing company in Newport,          much time to get a handle on the complex         was “a very cohesive group which provided         than 50 percent.
Ky. – they were pleasantly surprised with          workings of the family business.                 us with extremely valuable information.”              But perhaps even more empowering
their father’s pre-planning for the company’s          “Dad already was several steps into the          Tara and Trevor graduated from the Next       for Tara was her personal growth in the
succession.                                        succession planning process, and we were         Generation Institute in 2006.                     company that came just a few months ago.
    Robert Steinhauser’s plans for the fam-        ready to begin our discussions of executing          A year later, they graduated from the         That’s when Tara decided it was time to
ily business founded by his grandfather            his plan,” Trevor said. “He was so willing to    Goering Center’s Leadership Development           begin working out of the president’s office at
included naming Tara president in June             pass on the reins.”                              Institute. Designed exclusively for the Goer-     Steinhauser, Inc. – a room last occupied by
2005. Robert’s full intentions were to work            One of Tara and Trevor’s first business      ing Center by Cincinnati-based Leadership         her dad.
alongside his daughter and train her to as-        decisions was to seek the advice of Stein-       Excelleration, Inc., this program equips              “Until now, I couldn’t work in here,” she
sume the responsibilities of Steinhauser, Inc.’s   hauser, Inc.’s outside board of directors,       participants with the critical leadership and     said. “But I know dad would want me to be
top official.                                      which Trevor said was their “saving grace.”      business skills essential to improving perfor-    here.”
    Tara wasn’t new to the business. She           Both Tara and Trevor credit their father for     mance in an organization.                             From the president’s chair, Tara points
worked at the printing company summers             having the foresight to hire the three-mem-          “It taught us how to identify what kind of    through the open door into an adjoining
during high school and college, and officially     ber board nearly 30 years earlier.               leader we are and as a result, how to struc-      conference room. A wall portrait of her
joined Steinhauser after graduating from                “They (the board of directors) took some    ture our communication more effectively           father and mother is in direct view.
Denison University in 1995.                        serious time out of their schedule to make       with people who have different personality             “I can see my dad from here,” she said.
    But just five days after Tara was named        sure we were okay,” Trevor said.                 types,” Tara said. “We also learned how to        “And I ask him for help and guidance.”

   Director’s Column, Continued from Page 1B
                                                                                                      fall Classes forming now for the
   out simplifies some of the emotional            Family Business of the Year                        leadership Development institute and
   dilemmas associated with estate                     Banquet:
   planning. The value received for the               Please plan on joining us on                    next generation institute
   business by the senior generation’s             August 28, 2007 at Cincinnati
   estate (cash, notes, and so forth) can          Music Hall when we will honor the
   be worked into an estate plan that is           Family Businesses of the Year in the                  leadership Development                          the next generation institute
   equal for all children, and the estate          categories of Over 100 Employees,                  institute was designed exclu-                   is an interactive 8 step program to
   plan can be untangled from business             Under 100 Employees, Innovation                    sively for the Goering Center by                help the next generation of family
   continuity. It takes a lot of emotion           and Community Service. For more                    Leadership Excelleration, inc., the             business owners prepare for their
   out of the whole process.                       information on this event, please                  Leadership Development institute                coming leadership roles by assisting
      We would be glad to help you                 call our offices at 513-556-7185.                  will equip you with the critical lead-          successful transition, continuity, and
   learn more about this type of                                                                      ership and business skills essential            growth of the business, by facilitat-
   planning for succession. For more                                                                  to improving performance at your                ing family communications and har-
   information, please call our office at             Until next time………….WKL                         organization.                                   mony, and by managing relation-
   513-556-7185.                                                                                                                                      ships between generations.

                                                                                                               Please call mary Beth at the Goering Center 513.556.7185
                                                                                                                           if you would like additional information,
                                                                                                                        or visit our web site at

Description: Family Business Buyout document sample