Copy by Anita Tyler for University of Louisville School of Business; 4-page spread

1. For more information
on UL’s College of
Business visit us at
business.louisville.edu
D e c e m b e r 1 3 , 2 0 1 2
COLLEGE OF BUSINESS
OUTFRONT,
2013
Stewart
Cobb
A 1956 UofL
graduate, Cobb
started in the
hardwood
Wood Products, Lamnitops Inc. and
is the founder of Midwest Veneers.
Tom
Davidson
A 1962 UofL
graduate, Tom
Davidson started
a variety of
successful businesses including
Datatel Inc., Invision Medical Inc.
and The Balance Bar Co.
Terry
Forcht
A 1959 UofL
graduate, Forcht
leads The Forcht
Group of Ken-
tucky and owns 92 enterprises, in-
cluding nine nursing homes, nine
David
Jones
A 1954 UofL
graduate, David
Jones co-founded
Humana and
for 44 years.
James
A 1955 UofL
graduate,
his career as a
franchisee of Jerry’s restaurants
and later founded Long John
Silver’s and Rally’s restaurants.
Dan
Ulmer
A 1955 UofL
graduate,
Ulmer is
chairman of
the Louisville Bats AAA baseball
team and former president and
chairman of PNC Bank.
Monumental achievements deserve enduring recognition
Louisville has accomplished great strides in becoming a
community that supports and encourages innovation and
entrepreneurial thinking. Our Entrepreneurship Circle of
Fame was designed to recognize the outstanding accomplish-
ments of UofL College of Business alumni who drive our
economy as job creators, business innovators and com-
munity leaders. Enterprises such as Humana, Long John
Silver’s and Forcht Bank, are just a few worth mentioning.
In November, 2012, we inducted six high achievers into the
Entrepreneurship Circle of Fame by carving the honorees’
names onto granite slabs inside the Jane Goldstein Plaza.
Over 300 business and community leaders were invited to
the induction ceremony. Join us in congratulating these
inspiring business innovators:
DEC. 21, 2012 BUSINESS FIRST | 23
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Table of Contents
2 Business Insights, from The UofL Family Business Center
Advisory Board
3
3
3 Family Business Center Roundtables 2013
4 New Focus for MBAs: Health Sector Management (HSM)
Welcome to the University
of Louisville College of
Business OUTFRONT,
2013. Every great city has a thriving business
school, and Louisville is no exception. Our
college offers more than just a top notch
business education for students; we are a
resource to the business community and an
economic engine for the region.
Here we will recognize and support
outstanding business leadership, offer some
insights and reflections on the local business climate from the
region’s top family business leaders, and share information on our
innovative Health Sector Management MBA concentration.
Excellent companies integrate business education and continued
learning into their long-term strategy. Take this opportunity to get
to know us better, let us support you and get to know you better.
Call us to schedule a visit 502-852-7065 or visit us at business.
louisville.edu. As you will see, our emphasis on leadership, innova-
tion, and entrepreneurial thinking keeps UofL’s College of Business
OUTFRONT.
Dean Charles Moyer
UofL College of Business

2. Family Businesses are the cathedrals of
our economy. They represent 85% of all
businesses, yet only one third survive to the
second generation. The Family Business
Center (FBC) at UofL’s College of Business
provides family-owned businesses with tools,
tactics and strategies to help them meet the
unique challenges of growing and sustain-
ing their closely-held businesses. Ongoing
professional development and educational
opportunities are essential for family-owned
business leaders, especially those in the midst
of transferring leadership from one generation
to the next.
FBC members can learn about prevailing
best practices in family business management
and succession by attending our educational
seminars. These high- quality learning oppor-
tunities are conducted by leading experts and
thought leaders in succession planning, sib-
ling partnerships, tax-law, family governance,
preparing your family business for succession
or sale, and more. In addition, Family Busi-
ness Roundtables for both current and future
leaders of family firms cover sensitive issues
that can be intimately discussed and explored
in an atmosphere of trust and confidentiality.
FBC members also receive a complimentary
“Family Business Checkup” and consulting
services.
FBC members receive discounts on webi-
nars and conference calls with internationally
recognized family business experts. Most im-
portantly, they gain access to a supportive and
growing community of family business lead-
ers they can rely on for advice, understanding,
and guidance. To become a member, call us
at 502.852.1048 today or visit us on the web
at business.louisville.edu/fbc.
1. In your opinion what is the local business
climate for family and/or small businesses
in 2013?
Many of our members have experienced
an upturn in business activity during the last
quarter, and would express some degree of
confidence in the short term. Their long-term
outlook on the business climate, however, is
more restrained. When we asked our members
to describe the overall local business climate
they used the words “flat,” “uncertain,” “heads
down,” and “ap-
prehension.” Our
members do not
see a large increase
in earning capacity
in 2013. For fam-
ily businesses in
particular, “Taxes
are a huge upcom-
ing factor” – estate,
health care and
small business
taxes are going to hit family businesses hard in
2013. We will need to watch Congress and see
what the tax landscape looks like, and whether
or not the fiscal cliff will be avoided. Many
local businesses will decide to either expand
or contract depending upon the outcome. It
looks like the local climate is at a standstill.
Everyone is hesitant to make a move. Others
refer to it as a “wait and see” attitude The
focus for now is on maintaining rather than
growing. Many businesses are waiting for cer-
tain queues from state and local government,
federal government, the economy, and banks
before investing in a new initiative or growth
plan.
2. What is the biggest challenge to growth
for family and small businesses In 2013?
For family businesses in particular, the
biggest challenge in 2013 is estate planning
and perpetuation of the family business; it’s
going to be very difficult to pass it on to the
next generation. In 2013, the tax-free gifting
amount falls from $5
million to $1 million,
with a rate increase
from 35% to 55% on
additional amounts
gifted above the maxi-
mum. This makes it
restrictive for family
businesses to initiate
generational transfers.
Consequently, many
family businesses feel
pressure to make the transitions early in order
to take advantage of the tax landscape of 2012
and avoid the fiscal cliff. The downside of
rushing this process before the end of the year
is that succession-planning is a long-range,
complex and dynamic set of activities, and
both the current and next generation must be
adequately prepared in order to pass the torch
successfully. Transferring ownership in order
to avoid the fiscal cliff is not the ideal way
to transfer a business to the next generation,
and could potentially destabilize the business.
Poorly planned generational transfers are the
main reason why only one third of family
firms survive to the second generation.
Access to capital will continue to be a
challenge in 2013. Renewing loans and secur-
ing additional financing are increasingly dif-
ficult. With margins tight, banks don’t seem
to want to lend money to those who really
need it. Private money is available however;
traditional investments are no longer attractive
or available, so groups of private investors are
pooling their money together. The problem,
however, with private investments and fam-
ily businesses is the potential loss of family
control, as private investors tend to carve out
a percentage of ownership in order to steward
their investment. In some cases this may
actually be a good thing for a family business
looking to professionalize their operations and
bring in outside expertise.
3. What’s the biggest opportunity for family
and small businesses to grow in 2013?
There is an opportunity for small busi-
nesses to acquire other companies, as many
businesses are looking to sell in what is now a
buyer’s economy. Local companies who were
unable to manage through the past five years
of difficult economic climate are selling, for
better or worse, at a discount. One family
business leader indicated that his family firm
acquired three businesses in 2012, and they
expect this trend to continue. Again however,
financing is hard to come by for those who are
not cash positive. This represents a signifi-
cant opportunity for companies with a cash
reserve. With rates extremely low, companies
are not benefiting from holding large cash
accounts as assets on their balance sheets and
there are many promising opportunities to put
that money to work.
Our members also referenced an opportu-
nity in 2013 to improve efficiency, operations
and to strengthen their business model. It is a
good time to invest in your people by provid-
ing leadership training, continuing educa-
tion, and skill set building. Many of these
companies have looked at internal processes
and made the decision to upgrade their in-
frastructure and implement new information
technology investments to improve efficiency.
Some are investing in social media and other
innovative marketing strategies.
One specific and unique area of growth
and opportunity experienced by our mem-
bers is in the area of local and agri-tourism.
People want to and will continue to want to
stay closer to home. Extravagant vacations
have been put on hold in favor of regional
venues because of the economic squeeze. Busi-
nesses connected to this industry have seen
an increase in activity and will continue to see
growth in 2013.
4.
see local and state government enact to
improve the business climate of family and
small businesses in 2013?
Our members identified several issues
that state and local government will need to
address in order to improve the economic
JA N UA R Y 2 4
Four Family Business Crises & How to
Avoid Them
Two-thirds of all business crises are preventable –
no matter how big or small your business is. The
Institute for Crisis Management’s Larry Smith
and Family Business Psychologist Ellen Franken-
berg will identify the four types of crises every
family business faces and outline steps to protect
you from them. Register at
www.regonline.com/fbcjan2013.
M A R C H 2 0
Dr. Van Clouse of the award-winning Forcht
Center for Entrepreneurship and Carl Chap-
man, CEO/Chairman of Vectren Energy will
explore how successful firms ignite entrepreneur-
ial thought and action! They will also discuss
the importance of continuous innovation and
opportunity identification within established
businesses.
Family Business Roundtables are small, private meetings where you can benefit from trusted
peer advice for your family business and learn what others have done in similar situations. A
group consisting of 7 to 12 individuals from non-competing family businesses participates in
discussions led by a professional facilitator. If you would like to join us for one of the following
upcoming roundtables, call 502.852.1048 or email Kathleen.hoye@louisville.edu for details.
New roundtables are also forming in 2013. Hurry, space is limited.
>
For CEOs and owners in charge of family businesses.
>
For sons and daughters of family business CEOs/Owners who are likely to take a leadership role
in the future.
>
Exclusively for wives, shareholders, in-laws, daughters or mothers who are affected by or partici-
pate in a family business. If you’re female and concerned about the impact of the business on the
family or the health of the family, this one’s for you.
PRESENTS A FAMILY BUSINESS SEMINAR
Four Family Business Crises &
How to Avoid Them.
January 24, 2013
8:30 a.m. to 1:30 p.m.
The Seelbach Hilton, Louisville, Kentucky
Two-thirds of all business crises are preventable – no matter
how big or small your business is.
Larry Smith, Institute for Crisis Management and Ellen
Frankenberg, The Frankenberg Group will discuss important
characteristics of family business crises and give you the tools to
identify them and mitigate their impact. Don’t miss this important
and timely topic; it could make the difference to ensure the success
and longevity of your family business.
Sudden Smoldering Bizarre Perceptual
Register at: http://regonline.com/fbcjan2013 www.business.louisville.edu/fbc
DEC. 21, 2012 BUSINESS FIRST | 25
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24 | DEC. 21, 2012 BUSINESS FIRST
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Meet our UofL Family Business
Center Advisory Board Contributors
Winery & Vineyards
Family Business Center informs, celebrates and strengthens family firms Preview of Family Business Center
2013 Educational Forums
Join an upcoming Family Business
Roundtable
A roundtable session was held on November 1,
2012 at Harding Shymanski and Co., with the
Advisory Board of the Family Business Center.
This group consists of top family business
leaders representing the largest and most
established family firms in the region. We asked
them to address economic and business changes
and challenges that could affect the climate for
family or small businesses in 2013. Here are
some of the key insights and observations that
emerged from that discussion:
Family &
Small
Business
Predictions,
2013
M AY 2 1
Together
Wendy Sage Hayward is an expert in assisting
family members to collaboratively create systems,
structures and relationships that help them
function as effective stewards of their enterprise,
especially as more generations enter the fold and
inactive shareholders begin to have a voice.
S E P T E M B E R 1 7
An expert in generational transitions, David
Ransburg brings a unique blend of business and
psychology to the table. He will present proven
strategies for your family business transition and
will offer valuable insights and communication
tools from his extensive experience working with
transitioning family firms.
www.efamilybusiness.com
To attend any or all of these upcoming seminars, or for more information, please call
502.852.1048 or register online at business.louisville.edu/fbc.
Kathleen Hoye, Director of the Family Business Center (FBC) at
the College of Business has been awarded the Certificate in Family
Business Advising by the Family Firm Institute (FFI). This Certificate is
presented to individuals who have achieved comprehensive professional
knowledge and gained significant expertise that can be used to advise
family business owners and family wealth clients.
This distinction further ensures the highest standards in professional
best practices will be implemented. Participants like Hoye have access
to the latest information and resources for exploring the core disciplines
– behavioral science, finance, law and management science – and steps
for forming collaborative teams. Hoye has fine-tuned her skills to help
family and small businesses in our community grow and prosper, and
is now offering family business consulting services through the Fam-
ily Business Center. The Family Business Center offers interactive workshops, roundtables and
events, case studies, panel presentations and education forums; providing FBC members with
access to modern solutions for today’s family-owned businesses.
Director of Family Business Center at the
College of Business receives International
Certificate in Family Business Advising
Kathleen Hoye
Director of the Family
Business Center

3. Most new year’s resolutions last 31 days.
This year make a resolution
that lasts a lifetime.
visit us at business.louisville.edu/mba
26 | DEC. 21, 2012 BUSINESS FIRST
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Investing in Health Sector Manangement electives -
a wise ROI
The business of health care is booming
and with our MBA with a Health Sector
Management (HSM) concentration, stu-
dents are gaining valuable knowledge in the
many facets of this dynamic field. All MBA
degrees can now include a Health Sector
Management concentration. This option
includes cutting-edge electives taught by top
leaders in the industry.
MBA students who participate in HSM
electives are exposed to global issues, trends
and strategies in patient outcomes, access
to care, physicians’ office management, cost
management and service delivery models,
patient and provider relationships and orga-
nizational dynamics unique to this industry.
This includes courses in critical skills needed
for top management positions in bio-medi-
cal, facility administration, financial, insur-
ance services, senior care and marketing.
Our MBA is a fast-track solution for
working professionals. Our accelerated
programs deliver the skills, experience and
networking needed for graduates to advance,
seek a leadership position or successfully
transition to a new career. Regardless of your
focus, our MBA includes a revolving sched-
ule of classes organized in 5-week modules.
Students benefit from a world-class faculty,
many of whom come from Fortune 500
companies. For more information about
our MBA programs, visit us on the web
at business.louisville.edu/mba or call us at
502.852.7257.
Rankings
climate of this region. One is the focus on in-
dustry attraction. Our members strongly feel
that more effort needs to be made to retain
and grow companies already operating in this
region. The limited number of incentives for
expansion of existing companies makes it dif-
ficult to retain and grow our economic base.
Surrounding states meanwhile are offering
benefits to lure companies across state lines.
Tennessee, for example, has no income tax,
yet we have an added occupational tax on
top of state income and federal income taxes.
Indiana and Tennessee are also both “right
to work” states. The government did finally
offer a tax-credit to companies investing in
infrastructure here in the state. Previously,
this law was exclusively offered to companies
making an initial investment into the state or
moving their company here. More industry
retention and growth incentives like these are
applauded and encouraged.
At a Glance
1
2
Management
3
4 Financial Issues in Health Sector
Management
5
6