The seminar, “Five Family and Closely Held Business Crises and How to Avoid Them,” was sponsored by the Fordham Institute for Family and Private Enterprise (FIFPE) in conjunction with HSBC Bank. It was held at HSBC headquarters on Fifth Avenue in Manhattan.

Considering the deteriorating economic climate, it seems there has never been a more important time for the family business to succeed, said Howard P. Tuckman, Ph.D., dean of the Graduate School of Business Administration (GBA) at Fordham.

Tuckman explained that there are roughly 180 family business centers at universities across the United States, but very few centers have survived in the New York area.

“That’s why Fordham has made a commitment to work with family businesses,” he said.

“We really do feel—at the both the faculty level and staff level—that with centralization about to take place due to regulation and many other cautions, it will continue to be the family business center that brings vibrancy and change,” he said.

The seminar was an opportunity for people linked to family businesses to network and learn how to protect their firms. Using video vignettes, the following scenarios were discussed:

•    Trying to beat “Uncle Sam” by not paying taxes or not working with financial experts.
•    Not putting a succession plan in place.
•    Not having the company appraised on a consistent basis.
•    Not having a will or estate tax plan, or failing to make a retirement plan.

“Clearly, no one likes to pay taxes,” said panelist Lance Myers, a partner at Holland and Knight LLP. “That’s why it’s important to start gifting plans early. If you gift interest to family members, you have less in your pocket and therefore are going to pay less in capital gains taxes.”

Patrick McCarron of Mass Mutual Financial Group discussed ways to insulate these businesses from the devastation that can occur if an owner dies or becomes disabled.

“You have to come up with a transition plan,” McCarron said. “Succession planning is important, as is getting disability and business overhead expense insurance. Draw up clearly defined roles for family members and key employees.”

Other advice given at the seminar to family owned and closely held businesses includes:

•    The business should be appraised on a consistent basis and a buy/sell agreement should be put into place.

•    Family or closely held business owners should have up-to-date wills and estate tax plans. Funding vehicles should be put in place to pay estate taxes.

•    Owners should have a retirement and post-retirement income plan in place and this plan should be reviewed yearly.

Established in 2008, the Fordham Institute for Family and Private Enterprise (FIFPE) is a business community outreach program of the Graduate School of Business Administration. FIFPE serves the educational and networking needs of leading owners of family firms and closely held businesses. It is part of the University’s Bert Twaalfhoven Center for Entrepreneurship. Holland and Knight LLP, CBIZ Mahoney Cohen and Lincolnshire Management are partners of FIFPE.

O’Connor “was a cornerstone of the MBA Accounting and Taxation program at Fordham Business,” according to Howard P. Tuckman, Ph.D., dean of the Graduate School of Business Administration, and Donna Rapaccioli, Ph.D., dean of the College of Business Administration.

“His enthusiasm for Fordham and his honest, no-nonsense approach to life earned him respect within the academic and professional worlds,” the deans said. “He will be missed greatly throughout our Fordham community. We mourn the loss of such a strong pillar of our school, and we hope you will join us in sending the warmest support to his family.”

O’Connor served as vice chairman and international member of the board of directors at KPMG Peat Marwick before coming to Fordham in 1987.

Since 1998, Tuckman has supervised more than 265 faculty and staff members and a student body of 4,000 as the dean of the undergraduate and graduate business schools on Rutgers’ Newark and New Brunswick campuses. At Rutgers, he has successfully built strong cooperative relationships with the pharmaceutical industry and developed overseas programs in China. Tuckman previously served as the dean of the business schools at Virginia Commonwealth University and the University of Memphis.

“In light of his wide experience and his proven record in the field of decanal leadership, I am confident that he will lead the Graduate School of Business Administration with real distinction,” said Joseph M. McShane, S.J., president of Fordham University.

A prolific scholar, Tuckman has written or co-authored seven books and more than one hundred peer-reviewed articles on educational finance, education in developing countries, finance of government and the economies of wealth. He has received the B’nai Brith Golden Medallion for his contributions to higher education, and a Brookings Economic Policy Fellowship and a Ford Foundation Graduate Fellowship.  He has also served as a member of the boards of the New Jersey Center for Nonprofit Management and Leadership, the New Jersey Symphony Orchestra, the New Jersey Chamber of Commerce, the Levi Arthritis Hospital, the Small Business Development Center for New Jersey and the World Affairs Council.

Throughout his career, Tuckman has provided consulting services to several non-profit and for-profit companies, including the National Science Foundation, Texas Board of Regents, National Research Council of the National Academy of Science, the World Bank, Holiday Inn and Douglas Publications.

The Graduate School of Business Administration, established in 1969, has been recognized nationally for the quality and innovation of its programs, which prepare graduates for global competition.