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Advising Families with Owned Enterprises and Family Offices Bermuda STEP Conference. Agenda. Family Business vs. Professional Management. Problems with Family Businesses. Strengths of Family Businesses.
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Advising Families with Owned Enterprises and Family OfficesBermuda STEP Conference
A family is an inherently long-term institution and a well run family enterprise is run to endure for the future – and this is an advantage in navigating and surviving a changing world.Carlock & WardWhen Family Businesses are Best, 2010
Some family businesses Walmart LVMH AIG NY Times Ford General Dynamics Cargill Disney Levi Fidelity BMW Fiat Bombardier Sainsbury Motorola Viacom
The Three Circle Model Board of Directors Owners Family Management Senior Management Family Council Family Assembly
Network of Families Multi- Generational Family Nuclear Family The Developmental Stages of the Family System
Family Z Family H Family E Family J The Complex Family Network Family E Family A Family C Family Enterprise Family D Family X Family B
Provide system for coordinated member involvement in decisions and activities that effect their lives Provide possibilities for meaningful participation Is essential for sustaining the family’s legacy and unity Calls for a willing devolution, delegation and decentralization of authority The Family Governance Structure How to Organize Complexity
Governance Structure for a Complex Family Enterprise Family Governance Business Governance Family Assembly Shareholders’ Assembly Board of Directors Family Council Career Planning Committee Family Office CEO Redemption Fund Family Foundation Venture Capital Fund Education Committee Management Governance Family Reunions
The Board of Directors in the family enterprise • Protect shareholder interests / Set Policy / Big Picture / CEO & Mgt performance • Guarding decisiveness • Overseeing family involvement in the business
New investment regions (Asia, Latin America, NAmerica) both directions • Direct ownership, private equity and real estate is back! • Co-investing (German families are sought after partners) • Investment management – rethinking: in-house, outsourcing, diversifying • Financing and other needs through alliances
Disclaimer HSBC Private Bank is the brand name for the principal private banking and trust business of the HSBC Group. HSBC Bank Bermuda Limited is licensed to conduct Banking and Investment Business by the Bermuda Monetary Authority. Bermuda Trust Company Limited and HSBC International Trustee Limited, Bermuda branch, are licensed to conduct Trust business by the Bermuda Monetary Authority.