Managing capital allocation within a family business is a complex task with significant implications for shareholders. Different shareholders have distinct priorities. Some rely on dividends for lifestyle expenditures. Others seek capital appreciation.
In “You Can’t Spend the Same Dollar Twice,” Travis Harms delves into the concept of family business capital allocation. He emphasizes that family capital can either be invested in the business or distributed to shareholders. But it can’t be both. Striking the right balance between business needs and shareholder requirements is crucial for the long-term success of family enterprises. Discover how understanding these dynamics can lead to more informed and effective family business capital allocation decisions.
Read about family business capital allocation here.
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