WELCOME

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The Changing Value of Partners

Dave Simpson Richard Ivey School of Business

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$ or lack of $ = Loss of Memory

…..write it down

Dave’s Law

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Perspective

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=

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The “Band”

1962

‐founding concert “Rollin Stones”

‐Mick Jagger

‐Keith Richards

‐Brian Jones

‐Dick Taylor‐Ian Stewart

1963(Rolling Stones)

-Mick Jagger-Keith Richards-Brian Jones-Bill Wyman-Charlie Watts-Ian Stewart (became road manager by 1965)

1970-75

-Brian Jones dies and is replaced by Mick Taylor

-Mick Taylor quits in 1974

-Ron Wood joins in 1975

1993-Bill Wyman retires-Daryl Jones “hired”-Lisa Fischer “hired ‘89 tour”-Chuck Leavell“hired ‘82 tour”

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Rolling Stones

Partnership

Netherlands based companies

TouringRecordSales

MusicRights

ProductLicensing

$1‐2 BillionSince 1989

350 Employeesduring tour

Over 200 million albums

Film rights, Radio Play

Corporate:Microsoftpaid $4 million for 

Start me up

Logo t‐shirts

Underwear

Jackets

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Today’s Show

Video

‐Jagger ‐Richards‐Watts‐Wood‐Fischer‐Jones‐Leavell

Tickets  10,000,000

Merchandise  500,000

CD Sales 135,000

Food Bev   600,000

Advertising Rights 250,000

11,485,000

Revenues

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Key Documentation

• What are the assumptions in our partnership and what do we value

• When things change, how will we revisit these assumptions

• Which mechanisms can we agree to utilize –shotgun, buy, sell, valuations formula, etc.

• Do our wills reflect our operating assumptions

• How do we finance changes (insurance)

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THANK YOU!

www.family-enterprise-xchange.com

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