Is a family office right for us?
Many U.K. business families are considering if establishing a family office is right for them. As wealth grows, business owners are discovering how a family office can provide the structure, governance, expertise and insight to help co-ordinate and manage their financial affairs outside the main operating company, while realising their financial and family-related goals and providing long term continuity across generations. A family office is created by a family (or families) to serve their financial and personal needs. Given their bespoke nature, a family office can take many different forms and do many different things. Factors such as family size and dynamics, value and complexity of assets, financial priorities and lifestyle needs can all determine what form a family office should take and what services it should provide.
CATALYSTS FOR ESTABLISHING A FAMILY OFFICE To help the family reach a shared understanding of the mission of its family office, the first step is to clarify the goals and the problem the family is trying to solve: 1. Has there been a significant increase in the complexity, diversity or size of your family’s financial wealth? 2. Has the family grown in size and preparing for continuity across generations? 3. Is the family bringing external investors/partners into their operating companies? 4. Would some family members like to focus on new business opportunities outside the main business? 5. Do you want to formalise your family’s approach to family governance, managing distributions, investments or philanthropy? 6. Could your family benefit from centralised administrative services? Advantages of a family office Families that we work with often attest to the benefits that establishing a private office can have. It allows many areas of your business and financial life to be managed through a
centralised, efficient structure. This can enable economies of scale and skilful co-ordination to optimise wealth management opportunities and diversify beyond the core business to protect and preserve long-term family wealth. “It allows many areas of your business and financial life to be managed through a centralised, efficient structure.” As the name indicates, a family office also provides a structured, fully governed way for the needs and interests of family members across generations to be taken into account. Many families — especially as they grow, move around the world and acquire different interests and priorities — view the office as an essential platform for inclusive communication and decision-making. This can be especially valuable to have in place when handing down the business and other assets. By offering a range of support services, a family office also frees you to focus on running your business and building its value, while knowing that your personal wealth structuring is working just as hard for you. At the same time, business management and personal wealth management can be clearly separated, with the family office offering strong governance to assure transparent delineation.
FBUK Issue 7 16
Made with FlippingBook - professional solution for displaying marketing and sales documents online