Does Running a Successful Family Business Ensure Your Family’s Financial Legacy? With Richard Ryffel

Do you know how family businesses can thrive across generations? Join us in our episode with Richard Ryffel, professor of finance practice at Washington University in St. Louis. With 35 years of experience in financial services on Wall Street and regional firms and an MBA in finance, Richard has seen it all. He is currently teaching several finance courses as part of the Koch Center for Family Enterprise to help families better understand how to manage their businesses. Richard discusses the importance of diversification in family-owned businesses, how liquidity events should be handled, and the value of having a trusted advisor. He also explores the idea that wealth should be concentrated and diversified to stay wealthy, different generations' attitudes towards risk-taking, and the potential for failure as a learning experience. Tune into this riveting episode![00:00 - 08:04] 35 Years of Financial Services ExperienceRich's brief background and careerThe Koch Center for Family Enterprise was set up to drive research into the practice of running family businessesThere is a proliferation of private companies and more entrepreneurial spirit than ever before[08:05 - 13:58] Investing for Wealth PreservationSt. Louis has a robust history of companies that have survived for multiple generationsThe risks of not diversifying and how to do so without selling the business[13:59 - 22:35] Maximizing Value for Your Company Step back and think about culture and how important it is to maintain itConsider family involvement and whether you wish to continue to be involved in the businessHave a group of people around you with different lived experiences for inputConsider if there is a distinct competence or moat when expanding into adjacent businesses[22:36 - 30:52] Exploring Risk Taking and Risk Mitigation for Family BusinessesThe mindset of the younger generation is different from the baby boomer generation when it comes to family businessesYounger people are more willing to take risks but should be careful when investing in something that might failFailure can be a learning experience, but educated risks should be takenThe Center educates students on modern techniques and governance issues that may not have been considered before[30:53 - 37:23] Closing SegmentQuotes:"Careers always look organized in the rear view mirror. They look perfectly ordered. But when you're going through it, not so much." - Richard Ryffel"You get rich through concentration. You stay rich through diversification." - Richard Ryffel"Money in and of itself is nothing. Money is a tool to achieve something; your wants and needs." - Richard RyffelConnect with Richard!Email: [email protected] Olin Business School: https://olin.wustl.edu LinkedIn: https://www.linkedin.com/in/richardryffel Connect with me on LinkedIn!LIKE, SUBSCRIBE, AND LEAVE US A REVIEW on Apple Podcasts, Spotify, Google Podcasts, or whatever platform you listen on. Thank you for tuning in, and Stay Tuned for the Next Episode COMING SOON!  Hosted on Acast. See acast.com/privacy for more information.