Business Families and Family Businesses

• About STEP 7Foreword 9Clare StirzakerBoodle Hatfield LLPPart I. Setting the sceneUnderstanding the family business mindset: an evolutionary approach 11Justin B CraigTecnológico de Monterrey; Kellogg School of Management; Bond UniversityCatharina C JecklinBond UniversityClarifying purpose and values: guiding families towards meaningful goals 23Catherine GrumCatherine Grum Consultancy LtdTheories and models in family enterprise advising 35Patricia M AnninoRimon LawJudy GreenFamily Firm Institute Inc.Part II. Stages of the family businessStructuring the family business 51Toby CrooksKatharine HaggieHiral KanzariaRawlinson & Hunter LLPThe value of family governance 67Ken McCrackenMFBC LimitedStages of the family business 77Yannick ArchambaultKPMG CanadaKaajal PrasadKPMG AustraliaAdvances in human longevity and the impact upon family business transition plans 91Hayden BaileyBoodle Hatfield LLPNext-generation planning 107Matthew FlemingStonehage FlemingMaria VillaxBedrock GroupPart III. SuccessionPreparing for transfer of ownership 121Dan FroshFamily Firm Institute Inc.Andrew P HierCambridge Family Enterprise GroupTrusts and family businesses: the ideal succession solution? 137Nic ArnoldVictoria BlackburnJTC Private OfficeBryony CoveJennifer RidgwayFarrer & Co LLPExtracting wealth from the family business 151Russell PriorHSBC Global Private BankingSelling the family business 169Introduction 169Clare StirzakerBoodle Hatfield LLPThe financial impact of selling the family business 170Dominic EptonKatharine TaylorRothschild & Co Wealth ManagementThe process and family dynamic considerations of selling the family business 176Nick MayhewAlembic StrategyManaging family dynamics: how to improve communication and deal with conflict effectively 189Tony CohenAlexandra SharpeKinestra Partners LLPThe family business – options for preventing and dealing with family disputes 205Guy AbrahamsNick JacobDaniel UgurForsters LLPFamily businesses and divorce 217Katie O’CallaghanBoodle Hatfield LLPSophisticated reputation management for family companies 233Lily KennettVictoria O’ByrneSchillingsUnderstanding the wealth holder spectrum 245Matthew BraithwaiteWedlake Bell LLPGina PereiraDa¯na Stewardship AdvisoryProviding advice on philanthropy: why, when and how to raise giving with family clients 257Emma BeestonPhilanthropy adviserBeth BreezeCentre for Philanthropy, University of KentAbout the authors 275About Globe Law and Business 288

It is seven years since the second edition of this STEP guide, published by Globe Law and Business, appeared, and this updated third edition is both welcome and timely. The world has seen a series of dramatic events, not to mention crises, during this interval and the landscape for families of means has changed accordingly. Arguably the most significant long-term trend now gathering momentum is the tsunami of wealth that will cascade in the next two decades: trillions of dollars-worth of assets will be transferred between the generations. To prepare themselves, both advisors and families themselves will benefit from being fully-informed of all aspects of managing and advising on legacy wealth, and this guide makes an excellent place to start.Like its predecessor, this volume features contributions from practitioners who are leaders in their many fields. Their expertise covers up-to-date practice in sectors such as wealth management, the formation of trusts, tax planning, the sale of businesses to third parties and other transfers of ownership. The commentary of experts across the Anglosphere, where legal systems derive from English common law, provides a useful spectrum of views. This new edition, however, goes beyond the merely technical. There is a greater breadth of expertise brought to bear on the less tangible – but equally important - issues that families grapple with: succession planning, as you might expect, but also governance, the resolution of disputes, inter-personal dynamics and the creation of the processes and structures that help to lubricate the sometimes tricky intersections of family, business and ownership. The contributions covering newer academic thinking on family business and consultancy interventions are particularly illuminating for anyone seeking to understand how thought leadership in this field has developed. And the section on family philanthropy, something which is undergoing radical re-imagining, is extremely pertinent to an appreciation of next-generation attitudes to giving.I have found the second edition of Business Families and Family Businesses invaluable in my own work in this field. The third edition will be even more so.