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About Portland observer. (Portland, Or.) 1970-current | View Entire Issue (Sept. 26, 2001)
Æh. Page C8 f (ftb s rru rr When Selling Makes Sense Lilian Sevier Adams of R.D. Sevier & Son, Inc. is a family- owned garbage business in northeast Portland that has been around since 1957. Succession planning is a growing issue for family businesses due to demographics. Post-World War II entrepreneurs, who created the world's greatest wealth, have reached an age when they must decide how to pass on the wealth secured primarily in their family businesses. photo by M ark W ashington /T he P ortland O bse rve r by K ay C ooke for T he P ort land O bserver T he m otivations for the sale o f a fam ily b usiness can include one o rfn o re factors. A concise guide from T he Fam ily B usines Leader ship Series, “F inancing T ransi tions: M anaging Capital and liquid ity; in the F am ily B usiness” by VtSscher, A ro n o ff and W ard lists several reasons w hy som e families cl)®ose to sell their business. A c cording to the authors, selling m ay b e'n e cessary because o f lack o f successors, lack o f capital, estate lajf burdens, high prices on public ailS private m arkets o r other rea so n s. SUCCESSORS W hile there is generally no single reason for selling a business, for M êl and B ill Lane, brothers and former co-ow ners o f L ane Publish ing C om pany, it w as a concern for fam ily harm ony that w as key to their decision to sell the com pany. “W e ’ve seen fam ilies to m apart in the process o f succession,” says Bill Lane, retired publisher o f Sun set m agazine T he Lane brothers felt that tim es had changed dra matically since the magazine ’ s early days. “ A lthough all five o f our children w ere capable o f m anage m ent responsibilities, M el and 1 felt it could be challenging to bring five minds together to m ake critical decisions,” says Bill “M y brother and 1 still have adjoining offices. W e ’ve been very close all our lives, and we w anted that for our chil dren.” As youngsters, Bill and M el sold magazines door-to-door while their parents, Larry and Ruth, kept the business grow ing. T he brothers eventually becam e equal m ajority ow ners. Bill w as responsible for the m agazine h a lf o f the com pany, and Mel m anaged the book side. Each o f their five children ow ned equal shares and w orked in the com pany at one tim e or another. “ It w as an ideal fam ily ow ner ship and an ideal decision to sell w hen w e did,” says Bill. The kids have no regrets and are m aking their ow n m arks. W e feel it w as a w ise decision; m y brother and I have no regrets.” Bill says that th e y ’ve been too busy, particu la r ly in p u b lic s e rv ic e a n d volunteerism , to even consider the concept o f boredom . MARKETCONDITIONS In response to financial and m arket opportunities, and not nec essarily b ecause o f poor m anage m ent, m ergers and consolidations are the nam e o f the gam e in the September 26, 2001 MINORITY BUSINESS J V,. Ï $.lurtland corporate world. S u c h w a s th e c a s e w ith S tein feld ’s Products C o., a P ort land-based fam ily business pro- ducerofpickle and sauerkraut prod ucts. W ith outside shareholders serving as a catalyst, the com pany w as sold in 1999 to D ean Foods, a Fortune 500 broad-based dairy and specialty food processor that m ar kets regional brands and private label pickles. “M arket conditions can dictate w hen it is tim e to sell,” says R ick Steinfeld, grandson o f founders H enry and B arbara Steinfeld. “ It is hard to exist as a regional m anufac turer, and the business w as sold w ithin the right w indow o f o p p o r tunity.” Selling the fam ily business can leave the decision m akers w ith som e regrets. W hile selling the fam ily b u si ness m eant an end to.an era, it also opened up new opportunities. Rick is running a new business, and other Steinfeld family m em bers are dedicating them selves to things like public service and working with youth. s p e c ia l e d i l i o ft Nike joins in with The Portland Observer in celebrating the many valuable contributions made by minority businesses in our great state. PRES ERVINGTHE FAMILY Splitting the original family busi- co n tin u ed on p a g e C9 PORTLAND PARKS G Recreation Has a vision for meeting the ever Changing needs o f our community The City of Portland’s Bureau of Environmental Services and Office of Neighborhood Involvement Supports Minority Business Enterprises he Bureau of Environmental Services provides city residents with water quality protection, wastewater treatment, collection, and sewer installation. It also oversees solid waste collection and recycling services. T I he Office of Neighborhood Involvement is seeking community members to serve as volunteer mediators. Mediators empower Portland residents to have productive conversations with neighbors and work out peaceful solutions to everyday conflicts. T There are plenty o f opportunities to serve as volunteers, staff or be a part of our administrative team. People of all cultures and ethnic backgrounds are encouraged to apply. For information regarding Minority Business Enterprises contact opportunities, please contact the City of Portland Bureau of Purchases at 503-823-6855. E nvironm ental Services 1120 S.W. Fifth Avenue, Room 1000 Portland, O regon 97204 N eighborhood Involvem ent ,221 S.W. Fourth Avenue Room 110 Portland, O regon 97204 Charles Jordan Jim Franseconi E xecutive D irector C ommissioner C ity o f P ortland C ity o f P ortland P arks P arks 4 R ecreation K R ecreation I A A Dan Saltzman. Commissioner The City of Portland is an affirmative action/equal opportunity employer A A I
