WEALTH PRESERVATION AND GROWTH
ANDREW MANTON MBA & Co. has been instrumental in developing, implementing, and managing successful intergenerational family wealth and asset transfers. Family firms dominate global business and long-term planning is the key to the success of family wealth preservation and growth. To overcome challenges and economic phases family businesses must implement three essential steps:
STEP ONE: IDENTIFY ASSETS AND ROADBLOCKS
What is the role of the family in the business and what assets or unique contributions does each family member bring to the table.
What forms the foundation for the key business strategies for both long-term growth and short term fast-reacting management philosophies.
What roadblocks exist due to family organisation, development & diverging interests.
What roadblocks relate to business markets factors such as product, capital and labour markets.
What institutional roadblocks such as political and economic instability; inheritance laws and taxes ; and government regulation can be potential barriers for growth.
STEP TWO: DESIGNING THE ROAD MAP FOR FUTURE GOVERNANCE
Managing a family business for the long run is like nurturing a tree. You have to design a road map for the future governance of both the firm and the family.
What is the vision you aspire to for your family business. If you want to leave the firm in good condition for the next generation, you have to start planning now. If you want to eat mangoes 20 years from now, you plant a mango tree (not pears or apples).
You have to choose the right ownership structure, the right family involvement and the right management structure. You cultivate the growth of the tree over the next 20 years to ensure you receive the absolute best mangoes and crop yield.
If the family assets are waning, such that the family is going to have to relinquish control on the management side, now is the time to determine how you will professionalize the management team.
FAMILY BUSINESS SUCCESSION
STEP THREE: CULTIVATING THE TREE
Once an overall strategy path has been developed the time to begin cultivating begins. The cultivation process may take 20/30 years and for many very successfuly run family firms it becomes a forever ongoing process.
If the task is to cultivate a family business successor and enhance a family’s governance then how family assets are transferred and shared is important.
Succession planning means the right successor must be chosen from family’s younger members and there must be good foresight on how business strategies may change when a new successors takes over the business.
Good corporate governance structures should be cultivated to encourage external management to make value-enhancing decisions in the best interests of the firm. Maintaining strategic decision-making influence at board level while allowing non-family members to develop the day-to-day management of the firm and values needed to be aligned between family owners and external managers is a must.
KEY BUSINESS STRATEGIES
PLANNING A SUSTAINABLE FUTURE
ANDREW MANTON MBA & CO. Advisory and Consulting can build the framework needed to help a family business recognise what assets they really have, how to anticipate roadblocks ahead, and where to begin the long-term planning needed to ensure a sustainable future. Dependent on your own unique situation ANDREW MANTON MBA & Co. Wealth Advisory will best structure the long-term planning for your family firm, based on your unique family assets and your unique roadblocks.
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