Episode 166: Family Business and Planning for An Exit with Ahmie Baum

Owning and running a multi-generational family business can be challenging, but also extremely rewarding. You want your children and grandchildren to be able to generate the same level of wealth while also leveraging their unique strengths, allowing them to fulfill their potential. But miscommunication and family dynamics can cause unforeseen challenges that are difficult to solve from the inside. It can also be challenging for a founder to relinquish control and prepare the business for new leadership. 

Here to help us unpack this complicated topic is Ahmie Baum, CEO, and Founder of Interchange Capital Partners. Interchange Capital Partners is a family business that has honed a comprehensive and collaborative process over its 40 years of practice in financial services and is dedicated to helping clients and their families build financial safety nets. In our conversation with Ahmie, we discuss the mechanics and nuances of running a family business as well as the necessity of a well-planned exit strategy to ensure adequate reward for your years of hard work, ingenuity, and dedication. A major part of Ahmie’s expertise lies in helping family business owners and entrepreneurs focus on the impact of their business value, and how it will affect their family’s personal wealth and legacy.

Tuning in you’ll hear us cover a host of important elements you should be considering to ensure generational wealth and an effective strategy. Ahmie explains how siloed thinking can happen in business, why it’s harmful and breaks down why you need a well-functioning advisory model. He also shares his insights on adequate tax planning and mitigation as well as the unforeseen challenges that can come with a transition into retirement. This episode is jam-packed with critical information that will arm you with the knowledge you need to ensure the longevity of your wealth and an exit strategy that is conducted on your terms. Tune in today to hear it all!

What you’ll learn about in this episode:

• Introducing today’s guest Ahmie Bahm.
• Why you need to be prepared for transition and change in business.
• Ahmie’s early experiences with cold calling as a stockbroker.
• How Ahmie discovered his affinity for financial planning.
• Why it’s so difficult for people to realize they need an exit plan.
• Why you need to plan for an exit at least five years in advance.
• The difference between effective tax preparation and tax planning and mitigation.
• The types of questions businesses should ask to make sure they’re prepared.
• The role of temperament in working with clients and their exit plan.
• The trouble with siloed business structures and advisors not communicating.
• Why you need someone to facilitate communication between your advisors.
• How to gain clarity and understanding before you take action on your exit plan.
• A breakdown of a functioning advisory model and why you need one.
• The four dimensions of family capital: social, financial, intellectual, and human.
• How to recognize and utilize the other dimensions of capital, separate from financial.
• How miscommunication and dynamics within a family can affect the family business.
• The challenges of succession within a family business.
• Why retirement is often a much more difficult transition than anticipated.
• How to get in touch with Interchange Capital Partners.