The 1986 John Hughes-directed comedy, Ferris Bueller’s Day Off, chronicles a day in the life of a fly-by-the-seat-of-his pants teenager, Ferris. A high school senior confronting the final days of his living-at-home adolescence, he ditches a day at school and proceeds to lead his best friend, Cameron (as well as girlfriend, Sloane), on a series of wayward adventures across greater Chicago – with Cameron serving as his abiding, if not occasionally combative sidekick.
From evading a sleuthing Principal Rooney – to his momentary dalliance as Abe Froman, the famed “Sausage King of Chicago” – Ferris’s ability to seize the moment, to take risks, and to challenge the status quo all help to define him as a character. Indeed, these same attributes are also shared by many successful business owners and entrepreneurs.
Coupled with this, we are fortunate to live in a system and society in this country that rewards risk takers and those who have the courage to bet on themselves. That’s what makes America great! And yet, what insights can we glean from Ferris’s cavalier attitude and freewheeling ways throughout the movie?
Many founders face a litany of decisions when confronting the sale of a business that they have spent years, if not decades, sacrificing their time and resources to build. How do I obtain a proper valuation for my business? Have I engaged appropriate counsel? Will I require the services of an investment bank? And yet, when facing an exit, too many founders tend to over-allocate time and resources to prepping the asset for sale, while overlooking their own personal planning.
Unfortunately, this can produce real and negative consequences on a founder’s ability to maximize the net-of-tax proceeds they take home from any sale. As the much-repeated saying goes, “It’s not what you earn. It’s what you keep.” Thoughtful pre-sale estate and balance sheet planning, as well as post-sale legal structuring, can help to amplify what a business owner takes home as well as limit the dilutive effects of taxation. Further, these strategies are considered straight-down-the-fairway, legally blessed, and have precedent. Over the long term, proper planning can magnify a founder’s ability to support themselves, their loved ones, as well as their legacy.
In Ferris Bueller’s Day Off, time and again Ferris’s freewheeling, self-abandoned behavior is buoyed by Cameron’s at times equally-bizarre, yet balanced judgement to help him avoid trouble. Perhaps most notably, during the film’s famed “Sausage King of Chicago” scene, a defiant Cameron comes to Ferris’ rescue as he attempts to secure a table at a famed Chicago eatery by calling into the restaurant, and impersonating Sergeant Peterson of the Chicago Police Department. End result – table secured.
Just as the loyal Cameron comes to Ferris’s aid time and again– we would submit that an advisor’s role likewise is to look out for their client’s best interests, to educate them on all of their options, occasionally to challenge them, and ultimately help them to make informed decisions. A proactive advisor also knows when to step up to the plate and go on “offense” for their client when circumstances dictate.
As the film closes, a reflective Ferris remarks, “Life moves pretty fast. You don’t stop and look around once in a while, you could miss it.” For a business owner, there is something to be said for that. Before you make that big decision to sell, don’t forget to stop. And look. And explore ALL of your options.
And while you are at it, don’t forget to find your Cameron.
Jarrett Bostwick, JD, LLM, is Partner, General Counsel, and Co-Founder of Spearhead. David Reynolds, CFP®, CLU®, is Director of Business Development. Spearhead is a privately held financial services firm exclusively focused on providing premier wealth management and administration solutions to ultra-high net worth investors, family offices, and private placement markets. The firm strives to provide long-term value to clients on an after income and estate tax basis by combining balance sheet risk management techniques with investment strategies. Spearhead has offices in Florida and Massachusetts.
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