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At Deloitte Private’s 2019 Family Office Symposium in London, we used voting technology during one of the main plenary sessions to poll the audience - consisting of more than 50 senior executives of single family offices - on the topic of risk management.
The results showed that risk is high on the agenda for many family office executives, and so this blog post marks the first in a series on “Risk and the family office” where we’ll explore some of the key risk issues keeping family offices awake at night, as highlighted by our quick survey.
By Andy Halls, Lead Partner, Private Equity Backed Business Programme, Deloitte Private
How will the role of a private equity (PE) backed CFO change over the next 10 years?
That’s the question we asked over 100 CFOs, PE investors, CEOs and Chairs when producing our report into The role of the private equity backed CFO. What we were most surprised by was the overwhelming commonality, consistency and clarity of the key message: significant changes are occurring in the role of the CFO and the pace of this disruption will only accelerate.
By Tom Rees, Head of Business Development, Deloitte Private
Today we live in a disruptive world. We are seeing early-stage or disruptive companies emerging in large numbers across multiple industries, and valuing these businesses is often not as straightforward as it has been in the past for traditional companies.
By Vishwas Khanna, Director, Deloitte
‘Disruptive’ is the most suitable label for the latest cohort of Challenger Banks and other Financial Technology firms in the banking sector which have sprung up over the last few years. This sub-sector of Fintech banks is decidedly new, exhibiting agility and placing innovation at the core of their business, but they are entering a space already laden with relatively stringent rules and regulation.
Deloitte Private recently hosted a breakfast seminar for FDs, Heads of Tax, CFOs, and similar from various Fintech firms in the banking sector to discuss some of the challenges they may face as they continue to consolidate and expand.
By Simon Martin, Director, Deloitte
Forecasting the future is a dangerous game in any sphere of life, but in finance it’s perhaps doubly so. The world is changing so fast and across so many aspects of our work that what would have seemed futuristic just a few years ago is already becoming reality. The tech revolution is here and it’s changing everything. Does that thought excite or unsettle you? For most finance leaders, it’s usually bit of both so take some comfort, you’re not alone.
At the Deloitte Private CFO Conference for Private and PE-backed businesses, we took some time to consider what the future might hold for CFOs and finance leaders.
By Rudolf Janssen, Director, Deloitte Netherlands
The outcome of many a process within Family Enterprise Consulting is a written document, be it an agreement, a pre-nup, a last will, a family charter or constitution. Almost never such a document is a stand-alone item. Almost all family and family enterprise related documentation is not only inter-related but also very influenced by the context at the moment of drafting the wording of it. Just like the value of real estate is often a question of 'location, location, location', the real added value of legal documentation, specifically in the private domain, will be determined by its context and the fact that this context is explicitly incorporated in it. It’s all about the context? Yes it is. Let us share a few examples with you.
By Lizzie Hill, Partner, Deloitte
Family businesses are different, and their differences from other forms of enterprise, particularly around the issue of governance, need to be understood and accommodated, especially by chairs. Typically there is a much greater degree of emotion at play in a family enterprise and that emotion is, almost by definition, closer to the surface. While directors of PLCs and private equity houses are often dispassionate, family members feel an attachment to the business that runs deep, and this attachment extends across place, brand, product and purpose.
Sustainability is a business theme that, while being universally accepted as a good thing, has come to have a variety of meanings. From sourcing, environmental impact limitation and working towards the UN’s sustainable development goals (SDGs) to simply ‘continuing to do what you do’, sustainability has become a starting gun and a benchmark for discussions about the future of a business.
But for family businesses, sustainability has an extra level of meaning – and importance. Not only is it about ensuring the business is in a position to continue successfully, it is also about addressing the inevitable pressures and tensions that come with generational change and succession.
Whilst the news cycle in the UK might have been periodically dominated by sunshine and sport over the early summer, the complexity of world relations, the economy and the use of personal data have never been far from the headlines. The scale of data and the technology available to interrogate it is driving many new ways of working and that is equally true in the world of taxation.
Families are usually a complex mix of individuals with different abilities, attitudes, aspirations and financial needs. Each family member is likely to want different things, and in the context of a family owned business, this can produce tension and discord.
This week Niall Glynn, a partner with Deloitte in Ireland, considers the challenges of encouraging engagement in multi-generational family businesses as the family expands.
I was recently at a client meeting where we were discussing the future evolution of Board membership across the second and third generations of a family business. Over the course of the meeting, it became apparent how little the third generation (the future directors) really knew each other, or had much of a connection with the business. The only shared memories they had revolved around distant interactions as children, and more recent ad-hoc interactions at family weddings as adults.