No family business is the same. Each family is its own unique and complex entity, comprised of three coexisting elements:
Within this ecosystem, each family must confront cycles of change, uncertainty and development that make it more challenging to successfully manage ownership structures and navigate family dynamics.
This increases the risk of family members leaving, family divisions and disputes within the family.
The ability to traverse the delicate period of intergenerational succession and effectively transfer control over to the next generation is fundamental to the ongoing prosperity and continuity of the business. It ensures continued development for years to come and maintains familial harmony.
Early, strategic planning is essential for an effective and stable wealth transition. It transforms the process into a passage unique to each family, rather than an obstacle to be endured. A well-thought out, disciplined approach that balances the financial and non-financial elements of the family offers the best chance for lasting success. One that integrates generational synergy and an evaluation of the different attitudinal and emotional profiles of individual members, with the constraints and limitations of inheritance law, tax variability and corporate regulations.