From left to right: Jonathan Jackson (Executive Director), Pam Bailey (Retired Former Executive Director), myself, and Parnell Black (CEO).

The 2019 NACVA Annual Conference

We just came back from our Annual Conference in Salt Lake City, Utah, last week during which we had the opportunity to learn the most recent trends in our industry shared by excellent Speakers, Professionals, Experts and Leaders at the top of our industry today. Some of our chapter members presented or co-presented during the conference.

I was particularly impressed with the organization of this conference that I found excellent, particularly the five star hotel we were in (The Grand America Hotel), the great number of participants coming from various parts of the United States and the World and the exceptional quality of topics that were discussed during the various sessions.

My visit to NACVA's headquarters was exciting as I met almost all those employees who help us achieve the level of success our organization enjoys today. First class organization.

Our traditional MD-DC Chapter dinner was held at the Caffe Molise in downtown Salt Lake City on Friday June 7, 2019 from 6:30pm to 10:00pm. We had double digits participation this year as previous years. A jazz band helped us digest the exceptional food served in that restaurant.

Finally, I was awarded a Certificate of Appreciation for my involvement in the association as Chapter President for MD-DC and as Board Member in the Valuation Credentialing Board (VCB), by our Chief Executive Officer, Parnell Black.

I want to thank all those members who took part in this year's exceptional annual conference on site or online. Next year's conference will be in Philadelphia.

Here is the certificate of appreciation that came with the Award.

Annual Conference Pictures Gallery

Below is a gallery of pictures we took during the annual conference in Salt Lake City, Utah.

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  • By Achille Ekeu, MBA, CVA

Families own or control 90 percent of businesses in the United States. But according to the Family Business Forum at the University of North Carolina in Asheville, 30 percent make it into the second generation (Success), 12 percent, into the 3rd generation (Headline) and only 3 percent into the 4th generation (Dynasty). Due to poor planning, preparation and communication between siblings, brothers and sisters of a family, ugly valuation fights arise sometimes that affect the value of the family business.

Specific Characteristics of Family Companies

  • 80 percent of family businesses have between 20 and 499 workers, with sales ranging from $5 millions to $30 Millions.

  • Family-owned businesses with 20 or less workers employed 20.2 million Americans whereas those with 21 to 499 workers employed over 55 millions Americans.

  • Family owned businesses generate 64 percent of the nation’s gross domestic product, however only 30 percent have succession plans and less than 40 percent have a successor lined-up.

  • Family finances are too tied to business success.

  • Two-third of family businesses don’t require family members to have the qualifications or related experience to be successful when entering the business.

  • Nearly half of America family businesses are operating without a written strategic plan.

  • 75 percent of family owned companies have a board of directors, an advisory board, or both, that guide them when making strategic decisions.

Family Businesses Face Big Issues

  • It is estimated that 40.3 percent of family business owners expect to retire, creating a significant transition of ownership in the US. Less than half of those expecting to retire in five years have selected a successor.

  • Nearly half of family business owners (43 percent) have no succession plan in place.

  • Even though nearly 70% of family businesses would like to pass their business on to the next generation, only 30% will actually be successful at transitioning to the next generation.

  • A majority of family businesses (60 percent) believe that their ethical standards are more stringent than those of competing firms. They also report ethical standards being discussed often or always at meetings with employees, in discussions with customers and during board meetings.

How Families Hurt the Value of Their Businesses

The failure to plan for succession in a family business is more often than not the root cause of many issues that threaten the value and future of their businesses. Some of those issues include:

  • No succession planning

  • Strong owners can be weak at leadership development

  • No strict rules govern family members coming into the business or back into the business

  • The next generation is not trained to play nicely

  • Families can be resistant to change, and so can their companies

  • No formal compensation structure exists

  • Family conflicts inside and outside the company

  • And more…

All these issues affect the valuation of their businesses; therefore the value of these companies may not be as high as the owners think. The simple reasons are that they do not follow best practices for their industry, and their finances and business strategies are not in the best of shape.

Achille Ekeu, MBA, CVA

President/CEO

The Washington Valuation Group (WVG)

Achille Ekeu is a Certified Valuation Analyst (CVA) member of the National Association of Certified Valuators and Analysts (NACVA) in the DC-MD Chapter. He provides valuation services for Estate and Gift Tax, Purchase, Sale of business, Debt Financing, Buy-Sell Agreements, and Litigation Support in Divorce/Shareholders disputes cases. He can be contacted by phone at 240-274-9570 or by email at achille.ekeu@washingtonvaluation.com.

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  • By Achille Ekeu, MBA, CVA

Here is a testimonial from recent clients (father and son), Robert Wheeler and his son Robert C. Wheeler, owners of Tranz Global, Inc. located in Falls Church, VA. They contacted the Washington Valuation Group for the valuation of their company few weeks ago. They provided us with all the documents we needed. We did the valuation and submitted our report. They were very satisfied and agreed to give us their opinions of our work.

Here is another testimonial form another recent client, Bishop Ode Hines, CEO of FaithCanon, Inc. located in Boca Raton, Florida, who contacted The Washington Valuation Group for a valuation of their new social media platform for Christians. They provided us with their business plan, we helped them with their financial projections and did the valuation of their start-up. We submitted our report and had a video conference call with all the Board Members of the company located in various cities around the World. Bishop Hines was very satisfied and agreed to share his experience working with us.

Those are some of our recent clients who where willing to share their experience with us on video. Many others sent us written statements that you can read on our Testimonials Page.

We want to take this opportunity to Thank all our clients and particularly those who agreed to share their opinions of our work with the public. Thank You!

For anyone looking to get their business valued, please contact us at 240-274-9570 or at achille.ekeu@washingtonvaluation.com.

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