Volume 14 Number 1 May 2005
A Publication of The Center for Family Business at the University of New Haven
In a family-owned business, family equity is value measured by trust, communication, shared vision and planning among family members
CFB Celebrated
ten years of service to family business
with music, awards and good cheer.
CFB Charter Members Honored
CFB Charter Members (from left to right): Bill
Maley, Jr., Trans-Lite, Inc.; Ed Kirik, Syntex Rubber Corp.; Gene Bishop, Bishops Orchards;
Leighton Lee, The Lee Company; Al Bishop,
Bishops Orchards; Cindi Bigelow, Bigelow Teas;
John Barrett, Barrett Outdoor Communications;
Lynne Perry, W.E. Bassett Co.; Stephen and Lou
Tagliatela, Saybrook Point Inn/Franklin Construction; and Steve West, National Sintered
Alloys.
On Thursday, October 14, 2004, the 10th
Anniversary Celebration of the Center
for Family Business was held at The New
Haven Lawn Club. The committees who
planned this gala celebration consisted
of CFB members who demonstrated their
CFB Founding Sponsors receive
awards in recognition for their
longstanding support.
Len Leader and Charles C. Kingsley of Wiggin
and Dana; Trung Trang, Sequence Financial/
MassMutual; and Daniel M. Smith, Gowrie,
Brett & Young/MassMutual.
deep commitment to CFB, as well as
CFB’s first director and past member,
Michael Camerota.
Committee members included John
Barrett, Barrett Outdoor Communication; Cindi Bigelow, Bigelow Teas;
Kevin Driscoll, Phoenix Press; Sam
Edelston, Boardroom; Laura Grondin,
Virginia Industries; Joe Grushkin,
Unishippers/Joe’s Furniture WareA Musical Moment
CFB Member Sam Edelston, Boardroom, Inc.,
and CFB Director Paul Sessions, entertain the
crowd with a number Sam wrote in honor of
CFB’s 10th Anniversary Celebration.
house; Grace Hurley, Amarante’s Sea
Cliff; Roger Joyce, Bilco; Ed Kirik,
Syntex Rubber; Ben Lebov, Aaron Supreme Trailer Leasing; Bill Lee, The Lee
Co.; Loretta Lesko, DiMatteo Insurance;
Bill Maley, Jr., Trans-Lite; Jonathan
Moffly, Moffly Publications; Jamie
Orvis, Security Solutions; George Platt,
Harty Press; Art Rivel, Rivel Research;
Tom Romano, CRT; Stephen and Viola
Tagliatela, Saybrook Point Inn/Franklin
Construction; Isabel Tartaglia, American
Steak House; and Bob Thompson,
Horton Printing.
Roger Joyce kept the evening moving
along as Master of Ceremonies. He introduced UNH’s recently appointed
president, Dr. Steven Kaplan, who had
Lois and Samuel Bergami Honored
Samuel S. Bergami, Jr. , President of Alinabal
Inc./ Member of UNH Board of Directors, and his
wife, Lois, are recognized for their generous
endowment to the Center for Family Business.
Samuel S. Bergami, Jr., President of Alinabal
Inc./UNH Board of Directors Member, and wife,
Lois, are recognized for establishing an endowment for the Center for Family Business.
brief remarks for this special occasion
in CFB history.
Next on the program were remarks by
Samuel S. Bergami, Jr. Sam is the President of Alinabal Inc., and a member of
the University of New Haven Board of
Governors. Sam and his wife Lois were
presented with an award in acknowledgment of their generous gift establishing an endowment for CFB.
M.L. McLaughlin, Ph.D., one of CFB’s
founders, recognized founding spon(Continued on Page 4)
CFB Sponsors receive awards in
recognition of their support.
Denise Davis of U.S. Trust with David Bailey,
Bailey, Schaefer & Errato, LLC
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In The Four Agreements by Don Miguel
Ruiz, he offers the following as a code of
conduct for living and transforming our lives:
Be impeccable with your word.
Don’t take anything personally.
Don’t make assumptions.
Always do your best.
In the world of families and family businesses, these four deceptively simple maxims can present wonderfully stimulating challenges to those who would incorporate them
into their lives and their businesses. I have
been thinking recently about BusinessKillers,
presented in our February conferences, and
got to wondering if these Agreements might
be helpful in facing and dealing with the issues we raised.
We showed several scenarios (see below)
in which wrong decisions or failure to act
resulted in severe, sometimes catastrophic,
consequences for both business and family.
These are challenging situations, almost overwhelming in some cases, and there can be a
tendency to avoid them if there is not a sense
of urgency about resolving them. Are you
moving forward with what you know you
need to do? Are you being impeccable?
“I know what my business is worth.”
The issue here is company valuation for purposes of estate planning and buy/sell agreements. It’s easy to see that making ASSUMPTIONS about company value could
have disastrous results, but what about the
danger of taking things too PERSONALLY? A PERSONAL belief in the value
of a business that ignores the results of a
professional valuation process can also
cause equally bad results.
“I’m too busy running the company.”
Do you have a will and have you kept it
updated? Do you have an estate plan beyond your will? Are you ASSUMING that
even if your will and plan are not up-todate, things will work out as you wish? Are
you being IMPECCABLE about your obligations to those who will survive you?
Very simply, are you DOING YOUR BEST
to ensure an outcome that meets your
wishes and the needs of your heirs? If not,
what must you do differently, and how long
do you think you can wait to do it?
“That’ll never happen to me.” What is
your company’s succession plan? Is it written? Are you ASSUMING, as happens so
often, that, “We’re family, it will all work
out OK, so we really don’t need a succession plan.”? The vast majority of family
businesses do not have written succession
plans, which is one of the major reasons
why so few survive into the 2nd generation.
Are you being IMPECCABLE if you fail
to plan?
“My business is my retirement.” What
is your retirement plan? Are you ASSUMING that you will be able to continue drawing income from your business after you
(continued on Page 6)
R.C. Bigelow, Inc. Reaches 60
Year Milestone . . .
Ruth Bigelow
In 1945, Ruth Campbell Bigelow, an avid
tea connoisseur, happened upon a special
colonial recipe that combined tea with orange
peel and spices. After much trial and error in
the family kitchen, she re-created what she
thought was the best tasting recipe. She
shared samples with family, friends and acquaintances, and one of them reported back
that her new tea had caused nothing but constant comments. Thus the “Constant Comment” name was born. Sixty years later, her
son David, his wife, Eunice, and their two
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daughters, Lori and Cindi, are continuing the
family-owned company’s tradition of expanding Ruth’s idea with many new flavors
in tea, herb teas, green teas and iced teas.
Much time and attention is put into each and
every tea they make to ensure the consumer
gets the best tasting cup of tea possible.
Bigelow was the first company in the
U.S.A. to wrap each tea bag in airtight foil
envelopes. Up to that time, most tea companies packed their tea bags unwrapped in cardboard boxes or used paper envelopes. Neither offered a barrier to keep tea fresh. Since
David and Eunice Bigelow felt it important
to keep the tea as fresh as the day it was
blended, airtight foil was the only answer.That
is why all Bigelow flavored teas and herb
teas are packed that way today.
The Bigelow Company has been, and always will be based upon strong ethical business practices and is dedicated to only the
highest standards in all areas. The family feels
an obligation to support the local communities where they reside, building good working relationships. They contribute to a variety of worthy causes. Furthermore, as a good
corporate citizen, they remain committed to
protecting the environnment by continually
striving to improve the environmental responsiveness of their packaging.
It has been 60 years since Ruth Bigelow
first developed “Constant Comment”, yet
the creativity and the desire for good taste
and quality she showed lives on through the
efforts of her children and grandchildren. Perhaps this is the greatest strength of a true
family business.
Eunice, Lori, Cindi and David
Bigelow
Planning for Incapacity
by David Kesner, Wiggin and Dana
A key component of any good estate
plan is planning for the possibility of
incapacity. The cases that become national headlines are invariably those in
which an incapacitated individual failed
to implement clear, written instructions
prior to incapacity. The time to make
these arrangements is well before the
need arises. The documents briefly discussed in this article can serve as the
backbone of your estate planning regarding incapacity.
I. Living Will. A living will allows you
to state your instructions today regarding life sustaining measures to be implemented or withheld in the event that you
are in a terminal condition (and cannot
make medical decisions at that time), a
permanent coma or a persistent vegetative state. Under a living will, you direct
whether CPR, medically-assisted respiration and medically-assisted means of
nutrition or hydration are to be provided
or withheld. Additional medical treatments can be addressed within a living
will. The crucial point is that you make
these decisions for yourself in unambiguous, written instructions so that
your directives are known and can be
followed should the need arise.
II. Health Care Agent/Attorney-in-Fact
for Health Care Decisions. You may appoint an individual as your health care
agent to act on your behalf in the event
that your physician determines that you
are unable to do so. That is, if your physician determines you are unable to understand and appreciate the nature and
consequences of health care decisions,
or that you cannot make and communicate informed decisions regarding treatment, your health care agent may convey your wishes concerning the withholding or removal of life support sys-
tems and take whatever actions necessary
to ensure your wishes are given effect.
You may also appoint an attorney-infact for health care decisions. This agent
would make decisions regarding your
medical treatment if it was determined
that you could not do so. The same individual often acts as both health care
agent and attorney-in-fact for health care
decisions.
III. Powers of Attorney. Under this document, you (the principal) give to a person (the attorney-in-fact) the authority
to take action on your behalf to the extent permitted under the power of attorney. The grant of authority can be extremely broad or tailored to fit a particular circumstance. Generally, the powers
of attorney executed as part of an estate
plan are general durable powers of attorney. A general power of attorney grants
the attorney-in-fact extensive powers to
act on the principal’s behalf in business,
financial, real estate, banking, insurance
and “all other matters.” A power of attorney is durable if it explicitly provides that
it is to remain in effect if the principal
becomes incapacitated. A power of attorney without this provision is not effective upon incapacity of the principal.
The power to make health care decisions on your behalf may be included in
a general power of attorney, or, as previously discussed, may be in a separate
document that addresses only health
care matters. Depending on your personal situation, you may want the same
agent(s) for both financial and health
care decisions, or, you may prefer to appoint one agent for financial decisions
and another for health care decisions.
A power of attorney may not be used
to authorize an attorney-in-fact to make
end of life decisions on your behalf.
IV. Revocable “Living” Trusts. The
terms of a living trust are set forth in a
written agreement. The grantor (or creator) of the trust transfers property to a
trustee to be held for the benefit of the
beneficiaries of the trust in accordance
with the terms of the trust agreement.
The transfer of property to the trust may
take place at the grantor’s death, or during the grantor’s lifetime. In the latter
case, should the grantor become incapacitated, a management vehicle for the
grantor’s assets is in place since the
trustee has the authority to manage the
trust assets. The grantor’s financial
needs can thus continue to be met without the expense and delay of having to
petition the court to appoint a conservator. If the grantor becomes incapacitated prior to transferring assets to his
or her living trust, the trust can nonetheless be effective if the grantor has
also executed a power of attorney (discussed below). In this event, the agent
under the power of attorney will have
the authority to transfer assets to the
trustee.
A living trust can be revoked or
amended by the grantor at any time prior
to incapacity or death. Accordingly,
these trusts can be revised to reflect
changes in tax laws or family situations.
At the grantor’s death, however, the
trust becomes irrevocable. Typically, the
trust is a beneficiary of the grantor’s will
and contains provisions for the management and ultimate disposition of the assets of the grantor’s estate.
After death, a living trust continues to
provide advantages to the grantor’s family. A trust which holds the grantor’s assets at his or her death may simplify estate administration and reduce costs. A
living trust can also reduce expenses for
people who own real estate outside of
Connecticut by obviating the need for
ancillary probate in that state. Continuing trusts for family members established
under a living trust (as opposed to under a will) are usually subject to less
court supervision and as a result generally have lower administration costs.
Finally, many people value the privacy
accorded living trusts, which, unlike
wills, do not have to be filed as public
documents in the probate court.
Appropriate planning for incapacity
may make a world of difference for your
family at a time of tremendous stress and
heartache.
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sors: MassMutual and Wiggin and
Dana as well as sponsors Bailey,
Schaefer & Errato and US Trust.
Paul Sessions, CFB Director, presented
plaques to CFB charter members: Aaron
Supreme Trailer Leasing; The W.E.
Bassett Company; The Bilco Company;
Robert Baker Companies; Barrett Outdoor Communications; R.C. Bigelow,
Inc.; Bishop’s Orchards; The Lee Company; National Sintered Alloys;
Saybrook Point Inn/Franklin Construction; Syntex Rubber Corp.; and TransLite, Inc. (Charter members Advanced
Products Co., Inc.; The Dock, Inc.; and
Virginia Industries were not present.)
The entertainment for the evening
began with a surprise performance by
CFB member and songwriter Sam
Edelston performing a song he wrote in
honor of the occasion with CFB Director Paul Sessions. The duo delighted
the audience with their parody of Petula
Clark’s Downtown rewritten to reflect
family business and the CFB, showcasing Sam’s songwriting, singing, banjo
and guitar abilities, and Paul’s talents in
singing and guitar.
This preceded the “hired” musical talents of folk singer David Roth whose
selections included songs he had written about family, business and human
goodness.
The event provided CFB members,
sponsors and staff with memories that
will last well into the next ten years of
CFB.
THANK YOU ONE AND ALL!
We are very grateful to our benefactors who provided generous financial
support to make this evening so special:
The Bilco Corporation; The Lee Company; Saybrook Point/Franklin Enterprises; and United Illuminating.
Our thanks to those who donated services for this event: Harty Press and
Phoenix Press who worked together to
provide the event programs, Horton
Printing for the invitations, Leneker Design for the cover design of the invitations and programs, and Barrett Outdoor
Communications who provided a bill-
board-sized backdrop for the occasion.
Hats off to: Our table sponsors:
Bigelow Tea; Bishop’s Orchards; CRT
Associates; The Miller Agency, Inc.;
Mystic River Marina; National Sintered
Alloys; and Schumack Engineered Construction.
To: Trans-Lite for their generous donation.
To Our Program Advertisers:
Amarante Custom Catering; Security Solutions; The Dock; Aaron Supreme
Trailer Leasing; Bigelow Teas; Barrett
Outdoor Communication; Moffly Publications, Inc.; New Haven Lawn Club;
Ocean Marketing; PDC International;
T.R. Paul, Inc;, Unishippers and Joe’s
Furniture Warehouse; American Steak
House; Virginia Industries; Bead Industries; Allied Sinterings, Inc.; Eastern
Land Management; Robert Baker Companies; and Sullivan Paving.
And To: the many others whose contributions helped make this event a success for CFB.
Member News
Bishop’s Orchards Undergoes Major
Renovation to Benefit Customers
After three years of planning, Bishop’s
Orchards has broken ground for the new
addition that will add a total of 7000
square feet to the existing building, 2000
sq. ft. to be dedicated directly to the retail market sales area. The construction
started late February and the anticipated
completion of the main retail area is late
summer 2005. The addition will eliminate
the shortage of space in many different
areas of this growing business.
The addition includes expanded bakery, retail, refrigeration, freezer and office space. Over the past 10 years
Bishop’s has increased product lines and
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selections to better serve their customers. With the new health and diet trends,
and increasing requests for certain products by customers, this new space will
allow Bishop’s to provide for and address these new demands.
Bishop’s is dedicated to serving their
customers with the highest satisfaction
and quality, as they have since 1871. The
goal through this entire project is
to accommodate the customers first.
Customers are encouraged to stop by
often during this construction to see the
changes that will be occurring over the
next several months. Questions and
comments are encouraged, as Bishop’s
is interested in the ideas and sugges-
tions of its consumers. Most of the
construction will take place during store
hours, but efforts are being made to minimally disrupt daily business.
Bishop’s is pleased to support two local businesses during this expansion.
The architects who have designed this
beautiful building plan for Bishop’s are
from John A. Matthews A.I.A. Architecture and Planning in Madison, CT. The
Munger Construction Company of
Branford, CT is building the addition and
renovation. Bishop’s is pleased and confident about this joint venture and are
happy to have these firms working on
this exciting new project with them.
Bishop’s Orchards is a family owned
and operated farm market which has
been in business for 134 years. It is
currently being run by the 5th generation, with the 4th and 6th generations
actively involved in various capacities.
For information, contact Bishop’s at
203-453-2338; or on the INTERNET,
visit www.bishopsorchards.com
Professional Corner
Where Do We Go From Here?
In the recent “businessKillers” presentation, we were reminded of the risks involved
when we avoid, that is to say procrastinate, planning for our retirement and deny
that we must make decisions, sometimes
very tough decisions:
• who will succeed us,
• how we will replace our income
and how much we will need,
• long range financial planning and
implementation,
• asset allocation, diversification, tax
advantaged investment strategies,
• who will assist us; who will be our
professional and trusted advisors?
Technically and often emotionally overwhelming, we understand why we procrastinate and avoid tackling these issues. Who
wants to talk about diversification and asset allocation, let alone our replacement
within our own firms that we have either
built, helped to build or kept in business for
quite some time? No one does. It is well
understood. Nonetheless, we must face these
and other related issues and deal with them
straight-on; for the risks of avoidance far
outweigh the comfort of procrastination.
One very important concept you might
recall from the presentation and, indeed, the
cornerstone for understanding why long
term planning and investing work so well is:
The first rule of Finance: The “law of
compounding.” If memory serves, it was
Einstein who proclaimed compounding to
be one of, if not the, greatest discoveries of
all time. Consider the following example, and
I think you too will agree.
Clark came to us at 42 years of age, a relatively young business owner, who had
started his company five years ago. Clark
had, until this point, put ALL his money
back into his business. And, yes, I mean all
his money, though, his business was (and
is) doing well and has significant net worth.
We showed him that if, at 42, he began
investing $20,000 per year on a regular
monthly basis in equal amounts, in a well
diversified portfolio outside his business,
and continued through age 68, (his stated
retirement age) assuming an 8% compounded
growth rate over a 26 year time frame, his
assets would show an ending dollar amount
approximating $1,737,351.
If, however, he continued to put everything back into his business (the ole all eggs
in one basket syndrome), and waited until
he was 50 years old to begin his investment
program, then those assets would have an
ending dollar amount of approximately
$800,143, almost $1,000,000 less. The
power of compounding, as you can see, and
as Clark did, can be significant.
Smaller amounts make a difference too. For
example, a young woman 35 years of age, saves
$5,000 a year, growing at 8% per year until
she is 65 years of age. She will have an ending
value approximating $620,983 versus
$144,182 if she begins saving the same $5,000
at age 50. Even modest consistent investing
over a period of time will make a huge difference. So, now you know why Einstein proclaimed “the law of COMPOUNDING” one
of the greatest discoveries of all time.
The second rule of finance: the “ law of
diversification, asset allocation and optimization: Modern Portfolio Theory.” Remember the story of the three bears: Papa Bear,
Mama Bear and Baby Bear? Well they all live
within the family called “ Modern Portfolio
Theory;” and, just like most families, they
each play an important part.
Pioneered by Harry Markowitz and made
public in 1952, (Journal of Finance) “ Modern Portfolio Theory” uses the mathematics
of diversification to assess the risk-reward
characteristics of a portfolio of assets or investments. Every asset has a history of behaving a certain way under certain conditions.
Using that history and assigning random variables (random events) out of the universe of
possible scenarios, sometimes hundreds of
thousands, certain assets come together “just
so”, balancing risk and reward, to create an
optimal portfolio of assets. These make up
what Markowitz called an efficient frontier.
Thus, for a given level of risk that a client
is willing to take, financial advisors can determine where, along the efficient frontier, a client will be comfortable. Advisors then propose recommendations for asset allocation, a
percentage mix of stocks, bonds, real estate,
hedge funds, high yield, international, and various other securities and investments to create
the optimal portfolio. In accepting a proposed
diversified strategy, the client avoids the “eggs
in one basket syndrome” both in terms of having investments outside the family business,
and having investments in a “basket” of different asset types.
One reason diversification works is because
investment advisors are looking to place assets within a portfolio that have “low” correlations with one another. For example, you
might intuitively know that when oil stocks
go up, SUV makers, i.e., Ford, stocks will go
down. We see that today. Investment advisors, in addition, have correlation matrices and
various other models which they use when
creating portfolios.
This can be particularly important for family business owners, because understanding
the risk characteristics of a privately held business and how it fits within its industry can be
elusive. In the investment world, we apply
Denise Davis
US Trust
data and risk measurement variables that are
available for publicly traded companies. In
addition, clients generally provide company
data, records and competitive information
which contribute to being able to model risk
characteristics and create a risk profile.
In this way, at least, the primary asset of
the client is not ignored or left out of the
diversification modeling and the building of
an optimal portfolio.To leave out the riskreward characteristics of a primary asset is
like buying a car with 3 wheels. Or, better
said perhaps, reading the “Three Bears” without Baby Bear. (Unthinkable!)
(In 1990, Markowitz shared a Nobel Prize
with Merton Miller and William Sharpe for
his work.You might be interested to know that
one of the risk-return measures we use in
finance is the Sharpe Ratio. Bill Sharpe is still
active in the field of finance and investing.)
The third rule of investing: “the law of
patience.” Continuing with our three bears
story, we know that Goldilocks couldn’t resist sneaking into the three bears house. She
was just too scared, or hungry, or tired, perhaps, to continue on and get out of those
woods. So too, it is with the temptation to
focus on the short term fears (and impulses)
and forget our long term plans. But this can
be a terrible mistake.
I want to quote from a weekly market
synopsis:
Monday stocks turned in a strong performance, with the SPX (S & P 500 Index)
up 9.98…But stocks reversed tracks on
Tuesday with the SPX falling 10.36. The
Culprit was the CBCC Index, which showed
that the consumer’s take on the economy
had soured….But a big IBM announced
share buyback and a favorable researchtrial report for Genentech provided some
support. After opening in the red, the SPX
managed to add another 4.64 on Wednesday on favorable news about oil
inventories…However, on Thursday the
SPX declined 13.13., the biggest number
of the week. Preliminary first quarter GDP
growth came in at 3.1% much below expectations for a gain of 3.5%...Friday
brought better economic data on personal
expenditures and consumption, and on
the employment cost picture, all pointing
to a more moderate slowdown. But an-
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Where Do We Go From Here?
(continued from Page 5)
other negative consumer sentiment
reading dragged stocks down. Investors once more watched the green
light begin to flash yellow. But good
earnings from Microsoft…really
helped stocks strike back, and the SPX
posted its biggest gain of 13.63.
STEPHEN TAGLIATELA ACCEPTS CONNECTICUT CLEAN MARINA AWARD.
Pictured: Stephen Tagliatela, Elke Sutte, (DEP Clean Marina Program Coordinator),
and Grant Westerson (Executive Director, CMTA)
A History of Saybrook Point
Encouraging Cleaner Marinas
In 1980, the Tagliatelas purchased and operated the Saybrook Point Marina and part
of Terra Mar, undertaking repairs of the
property over the next several years. Seven
years later, a lighthouse was constructed on
the dock. The lighthouse has appeared on
the cover of Connecticut Magazine and in
several tourism magazines.
In 1987, years of negotiations with Old
Saybrook, lead to agreement to replace the
dilapidated Terra Mar with a first rate
hotel. The hotel was completed in 1989.
In 1992, the Marina Point Apartments
were completed -“24 upscale units offering
a new option to residents.”
In 1995, Saybrook Point completed the
first pump out station at the mouth of the
Connecticut River, and a dock was constructed
to accommodate boats up to 100 feet.
Five years later, the hotel was expanded
from 62 to 80 rooms, and in 2000, the spa
and fitness center was expanded.
The Saybrook Point Marina received a
“Five Bell” rating in 2000, the highest rating
given by Atlantic Coast Cruising Guide. In
2003, the marina was first to receive the
Clean Marina Award from Connecticut’s
Dept. of Environmental Protection.
It has also been awarded a number of
Green Circle Awards from the DEP for such
items as its pump out station, water conservation devices, creation of a public walkway, and significant time contributed to environmental projects.The marina is a lifetime member of the Coastal Conservation
Association.
Stephen Tagliatela accepted the “Spirit
of Saybrook” award. Stephen is also a
member of the Citizen Advisory Committee: Environmental Protection’s Long Island
Sound Study, the Connecticut Marine
Trades Association, the Connecticut
Developer’s Council, and Fort Saybrook
Monument Park Commission.
The Tagliatela family is extremely environmentally aware, striving to do all it can
to protect the environment.
Marinas aren’t the major source of pollution in Long Island Sound, but play a contributing role. The Saybrook Point Inn is
one marina contributing to a solution.
The Clean Marina Program, open to
Connecticut’s inland and coastal marinas,
boatyards and yacht clubs on a voluntary
basis, certifies business that have adopted
environmentally friendly practices.
Runoff from urban areas and farmlands
is the greatest source of pollution in the
Sound. But marinas can generate illegal sewage discharges from boats, oil spills, toxic
metals, etc. Untreated waste from one boat
toilet-holding tank may contain more bacteria than a full day’s worth of a city’s treated
wastewater. Because marinas tend to be in
sheltered areas, these pollutants don’t flush
out as they would in open water, causing
health risks from bacteria, viruses and protozoa to water and shellfish.
As enforcement goes, the Connecticut
Clean Marina Program—jointly developed
by the DEP, the marine-trades industry and
marina operators—is all carrot and no stick.
By encouraging easy, low-cost methods for
preventing pollution, this program is good
for marina operators, the public and the longterm health of our rivers, lakes and the Sound.
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Can you imagine making investment decisions based on each of these days? Do you
buy oil, or sell it? Do you “go long” the market or “short” the market? Investment professionals use this type of daily data to monitor market trends, which we watch, evaluate
and measure over an extended period of time.
Patience is key.
Speaking of patience, did you know that if
you panic and try to time the market, and
happen to miss the 10 best days, chances are
you will have a significant loss? From 1999
and 2004, a period of some significant moves
up and down, you would have lost 10.6% of
your portfolio of investments as represented
by the broad equity markets.
So, where do we go from here? Many of us
have either read to our children or our parents read to us (a long time ago) the story of
“Goldilocks and the Three Bears.” It always
ended with Goldilocks running off and everyone seemingly living happily ever after.
In our version of the story, the three bears
of Modern Portfolio Theory: diversification,
asset allocation and optimization work together to create a family of successful investing; we just have to trust them to do so.
Goldilocks, though she’s scared and panics
often, and occasionally gets sidetracked, ultimately succeeds in finding her way back to
the proven path and stays the course. She
has learned the lesson of patience.
And you, where do you go from here? Call
your trusted advisors, financial and otherwise. If you don’t have one, find one. Someone down the road is going to THANK YOU.
Stay the course, stay ahead of the game, and,
until we meet again, compound like hell.
UNH Names Tagliatela School of
Engineering
In recognition of the generous gifts made
by the Tagliatela Family, the University of
New Haven has named its School of Engineering in their honor. The gifts made by the
family will be used for major renovations and
improvements to the school.
At a recent press conference held on the
UNH Campus, the Tagliatelas expressed their
desire to support a school which turns out
many of the engineers so vital to Connecticut’s
industry and economy.
The Center for Family Business expresses
its appreciation for the generosity of the
Tagliatelas and congratulates them for creating this legacy for the Tagliatela family.
From the Director
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retire? Is that the BEST YOU CAN DO for
those who will come after you in your business? How else have you provided for yourself in the event that your business cannot
provide what you expected that it would?
For family businesses, these challenges are
not going away. You must choose whether to
face them and deal with them now, or ignore
them and risk leaving a mess to be cleaned up
by those who are left with your failure to
plan.
Paul L. Sessions, Director
Center for Family Business
CFB News
The Second Decade of the CFB
Your Center for Family Business is interested in providing opportunities for you to go into
even greater depth on topics in which you may have a specific interest or need. It is not
always possible to address these needs adequately in the regular schedule of the year’s
programs given the time constraints.
It has been brought to my attention that an interest has developed among some CFB
members for a specialized on-going program in Leadership Development.The program
would be offered first to, and at a lower rate for, CFB members. If the demand were there, it
might be open to non-members as well.
At one level, it might be for “in place” Senior Management, to further hone their leadership
skills. At yet another level, it could be offered to prepare Junior Management to assume
future Senior Management roles. This, of course, depends on demand.
The methodology would be interactive, applying the theory, and hopefully culminating in
an “Executive in Residence” experience.
The program may be offered once a week for 6 weeks from 3:00 - 9:00 pm, or once a month
for 6 months from 3:00 - 9:00 pm. The final schedule will depend on potential participant
feedback.
Clearly, the plan is in the vestibule of the research stage enroute to the development stage,
dependent on market study results. As successful businesspersons, you know the “coming
of life” of this program depends upon demand. You can well imagine I shall be seeking your
counsel.
Thank you.
M.L. McLaughlin, Ph.D.
UPCOMING EVENTS
Tuesday, June 7, 2005 • 5:30 – 9 p.m. • New Haven Lawn Club
Wednesday, June 8, 2005 • 8 – 11:30 a.m. • La Colline Verte, Fairfield
Creating a High Performance Workplace in Your Family Business will be brought
to us by the team from Winning Workplaces, Ken Lehman and Paul Singh
Your legacy will assure the future of
family businesses in Connecticut in perpetuity.
As an astute businessperson, you are
aware of your giving options:
• A direct donation restricted for a
specific use in the Center for Family Business.
• A direct donation unrestricted for
the Center for Family Business.
• A gift in kind (for example: computers; hardware; etc.).
• ACHARITABLE GIFT
ANNUITY.
What exactly is a Charitable Gift
Annuity?
At its heart, a gift annuity is simply a
contract between a donor and a charity such as the Center for Family
Business. In exchange for a gift of a
specified amount, we agree to make
specified annual payments for life to
one or two beneficiaries (annuitants).
If you have a specific interest in arranging
a charitable gift annuity plan for the Center for Family Business, please feel free to
contact, Daniel M. Smith, J.D., Founding
Sponsor of the Center for Family Business, Certified Family Business Specialist, and Accredited Estate Planner at 860399-3614.
Innovative people practices contribute significantly to superior productivity of employees,
which in turn leads to record-breaking profitability. Winning Workplaces, a non-profit
consulting and training firm, helps small and mid-size organizations, including family businesses, to enhance their competitive advantage by developing workplace practices that
increase employee commitment, performance, and retention. Join us for these conferences
and learn why progressive workplace environments logically lead to greater economic performance.
Tuesday, September 13, 2005 • 5:30 - 9 p.m. • New Haven Lawn Club
Jason Jennings: Think Big, Act Small: How America’s Best Performing Companies
Keep the Start-Up Spirit Alive. This is the latest book by author Jason Jennings, author of
two previous business bestsellers. Jennings screened 100,000 companies to identify littleknown firms who achieved outstanding performance over a decade, in spite of the fluctuating
economy. Despite the diversity of the industries these firms represented, Jennings has
identified many common denominators he feels are responsible for their stellar performances.
Jason Jennings will share his perceptions with the audience. Participants will also receive a
copy of Jennings latest book.
Celebrating 10 Years of
Service to Family Business.
.
. .
. .,
/
,
,
Tuesday, October 18, 2005 • 5:30 - 9 p.m. • New Haven Lawn Club
S.T.E.W.: Satisfy the customer; work together as a Team; strive for Excellence; and
get the customer to say Wow, presented by Stew Leonard, Jr.
Stew Leonard, Sr.’s father began a dairy farm and milk delivery business in the 1920’s. In 1969
Stew Leonard, Sr. founded a small dairy store with seven employees. His desire was to have
a farm market style store where children could watch milk being bottled while their mothers
shopped. Today, Ripley’s Believe it or Not has dubbed Stew Leonard’s the “World’s Largest
Dairy Store”. The New York Times calls it the “Disney Land of Dairy Stores”. Stew Leonard,
Jr. will share with us his experiences in this unique retail environment. Stew will share the
family’s business philosophy etched in 3-ton granite at each of their store entrances: “Rule
#1-The Customer is Always Right”, Rule #2 - If the Customer is Ever Wrong, Re-Read Rule
,
,
.
Family Equity is a publication of the Center for Family Business at the University of New Haven. Family Equity is distributed for general information purposes only and is not intended to render legal, accounting, or other professional advice. Accordingly,
readers should not act upon information in this publication without seeking professional advice. Copyrights to the articles in this newsletter remain with
the authors.
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,
Wiggin and Dana, one of the foremost
law firms in Connecticut, offers a complete range of legal services
including total business and personal legal support to organizations
and private firms and their principals and families. Wiggin and Dana
prides itself on taking the time to understand each client’s business,
industry, needs and goals, thus providing intelligent, practical, and
cost-effective counsel to family businesses. For more information, contact Len Leader at 203-363-7602.
Gowrie, Brett & Young provides Group Benefits and Human Resource
support through its unique Service Center staffed by a fully licensed
support team. Gowrie, Barden & Brett has served the needs of family
businesses for over thirty years with commercial, maritime and
workman’s compensation programs. Call Dan Smith at 860-399-3614.
MassMutual sponsors more than 50 university-based family business forums nationwide. MassMutual has produced educational guides,
workbooks, videos, and an inacteractive CD-ROM on family business succession; sponsored four national surveys of family businesses;
and awards the National Family Business of the Year award annually.
One of the oldest, largest and most highly rated life insurance companies, MassMutual has served family businesses since 1851. For more
information, contact Trung Trang at 203-259-5575.
UNH FOUNDATION
UNIVERSITY OF NEW HAVEN
300 BOSTON POST ROAD
WEST HAVEN, CT 06516
Tel: (203) 932-7421
Celebrating 10 Years of
Service to Family Business Fax (203) 931-6036
www.newhaven.edu/cfb/
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BSE is a certified public accounting firm servicing clients in accounting, auditing, business valuations, tax and estate planning. BSE’s clientele
includes those in manufacturing, wholesale, construction, professional services and retail. Their
mission statement: “Through personal and dedicated service, we work
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