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