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The Leber Family Joins the Winners’ Circle
 By
Henry D. Landes
September 2004
It has been exciting to watch Lance Armstrong win the Tour de France
for the sixth time in a row. The 20-stage race is so grueling that
no other five-time winner has been able to break the record. Armstrong,
a cancer survivor, will be 33-years old in September 2004.
Before Armstrong was born, Phil and Bert Leber mortgaged their home
and moved five children from Chalfont to Hatfield to buy George’s
Tool Rental. There were no sponsors, no press coverage and no mythic
comparisons. In fact, back when few people understood the concept
of renting tools and equipment, there were voices expressing caution
if not full blown doubt.
In the world of family-owned businesses, the Lebers are no less
heroic than Armstrong. For 34 years they trained for this final
challenging leg of the family business journey: ownership transition.
They won this stage of the race in record time by consistently making
intentional, timely choices that honored the family and the business.
The celebration dinner in July marked well their success. I was
honored to have been included on this journey.
Moving the ownership from one generation to the next is unfamiliar
territory – it usually happens once in a lifetime. It can
be a risky journey for all members of the family, especially those
who still work in the business, as well as for employees. Most transitions
are not successful, and all of them face considerable challenges
which include:
- Transfer of control, power and wealth to the next generation
- Protecting the ongoing financial security of the family and
the business
- Identifying which, if any, of the children are suited and willing
to take on the mantle of ownership
- Resolving disagreements while fostering a practice of honest,
vibrant discussion.
Perhaps the most significant challenge that families face is fighting
inertia, the way it’s always been. It requires many acts of
courage to begin the discussion, engage experts and make the critical
choices associated with ownership transition. The Lebers did an
exceptional job in this area. Here’s their story.
Phil and Bert Leber literally reared their five children in the
midst of George’s Tool Rental. All five of them worked in
the business at one time or another but when it came time to hand
off the business to the next generation, it was the son-in-laws
who had been carrying the lion’s share of the work for several
years. As Bert’s health declined, Phil diverted more of his
energies to her care. Wisely, Phil directed the next generation
to create a proposal for ownership transition that would honor the
family and assure a solid future for GTR, the employees and the
customers. It was at that point that I was invited to serve as a
guide to facilitate the discussions, clarify aspirations, identify
values, explore options, and forge a plan of action.
At our Center we share a foundational value with all of our clients
at the outset: The family is more important than any enterprise
or any business endeavor. Last fall, during this process, it
became obvious that a family matter more pressing than the business
had to be addressed. Due to the progressive nature of Bert Leber’s
struggle with Alzheimer’s disease, the family stepped back
from the business discussions and came together to discern the next
step in Bert’s care. After considering several options, they
made the difficult but appropriate decision to place Bert in the
Alzheimer’s Treatment Unit at Dock Woods Community.
Several factors contributed to this successful transition. First,
this family possesses a strong reservoir of good will toward each
other that is deeply rooted in their faith in God. This good will
was bolstered by their ability to speak the truth to each other
in love as they considered all the options together. Additionally,
they sought out and effectively used a team of trustworthy advisors
who have vast experience in working with ownership transitions,
including:
- Jon Samel, Esquire, Hamburg, Rubin, Mullin, Maxwell & Lupin,
who offered essential legal counsel for both estate planning and
business transfer
- Mario Vicari, CPA, Kreischer Miller, who offered invaluable
financial analysis and transaction support
- Bob Wieand, Quakertown National Bank, who arranged the necessary
financing.
The Lebers fought the inertia to continue working without a clear
succession plan and staying in half-hearted conversations about
what might happen in the distant future. They made choices and took
considered actions to complete the transition in record time, about
12 months.
As I noted in my remarks at the Ownership Transfer Celebration
Dinner, this process has been a “refining fire” for
Al and Marty Wismer, the new owners. While Al has demonstrated his
ability to manage the company over the years, he and Marty were
appropriately cautious and thoughtful about assuming ownership.
They will carry forward the governing values of GTR established
by Phil and Bert 34 years ago while offering a fresh vision and
renewed vitality.
Congratulations to the Leber family! Your willingness to engage
each other, seek counsel and make timely choices has served your
family and business well. Like Lance Armstrong’s new record,
your story and success are an inspiration to me and to other business
families.
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