The speaker discusses the complexities of estate planning for their business, Linus Media Group. They explain that if both owners were to pass away, the company would go into a trust for their underage children, which involves inheritance taxes and valuation complications. They express concerns about maintaining the company's ethos and avoiding it becoming 'soulless' through potential sales or public trading due to legal and financial obligations to shareholders. The speaker also highlights their desire to create a lasting ownership structure and acknowledges the importance of their team's collective experience in continuing the company's success.
Here are the key facts extracted from the text:
1. Linus Media Group is a Canadian company.
2. Linus Media Group has been running for nine years.
3. The company is owned by Linus and Yvonne.
4. Linus and Yvonne have children who would inherit the company if they pass away.
5. The company would be valued at a multiplier of its earnings before interest, taxes, and depreciation (EBIDA).
6. The valuation of the company could be as high as 10-13 times its EBIDA.
7. If Linus and Yvonne pass away, the company would be placed in escrow or trust while it is valued.
8. The person inheriting the company would have to pay a large amount of taxes on the inheritance.
9. Linus Media Group has 60 employees.
10. Yvonne is very detail-oriented and organized, while Linus is more creative and has a big-picture vision.
11. Linus and Yvonne complement each other's skills and work well together.
12. Linus believes that Yvonne's role in the company is more important than his own.
13. The company would have trouble surviving if Yvonne passed away, at least in the short term.
14. Linus has explored the possibility of employee ownership, but it is complicated and would require a fair market value to be paid for the company.
15. An employee ownership plan would also be subject to tax problems.
16. Linus has considered taking on investment to change the company's ownership structure.
17. Linus wants to create an ownership structure that can last longer than his lifetime.
18. A publicly held company is legally obligated to prioritize its shareholders' interests over all else.
19. Linus believes that this could lead to short-term decisions being made at the expense of long-term vision.
20. Linus has looked into employee ownership plans, but they are not a viable option due to tax and valuation issues.