Succession planning in Deloitte Private
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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.
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.
This week, Rudolf Janssen, a Director with Deloitte in the Netherlands, and Hugh Pickering, a Consultant with Deloitte in the UK, talk about the value of stepping back with families to reflect on the process of planning for generational transition.
Discovery, alignment, transformation
When family enterprises undergo successful and sustainable change during times of generational transition, we find that there are three important phases that they must go through, which we refer to as: discovery, alignment and transformation.
Succession, transition, change, transformation, adjustment – retirement! There’s a lot to think about as I step down from my role as Vice Chairman at Deloitte UK.
Having spent many years working with families and helping them through the challenges that succession brings, I am now finally doing it for myself. As I approach the end of a long career at the firm, I’d like to share my personal experiences as well as those that I have previously seen in a professional capacity.
This week, Tam Chee Chong and Cathy Chow from Deloitte in Singapore discuss the effects of Asian culture on succession in Asian business families.
Asia’s business families are in the midst of experiencing unprecedented generational change; the majority are transitioning their businesses from first to second generation, and some are making the transition from second to third generation. For many, family values, underpinned by culture, are one of the most influential factors impacting succession planning and the decisions made on that journey.
Although most often thought of as primarily a transition in leadership, succession can be the perfect opportunity for entrepreneurial families to assess what other changes may need to be made to their business, helping to ensure that both family and business work together for a sustainable future.
This week Niall Glynn, a partner with Deloitte in Ireland, discusses the importance of planning for a successful retirement.
This week, Joanne Whelan, a partner with Deloitte in Ireland, discusses the use of trusts in succession planning.
For years in Ireland and elsewhere, the use of trusts as an asset-holding mechanism fell out of favour due to changes in tax regimes, and of course, it is still the case that the relevant jurisdiction’s tax rules must be considered before any decision to set up a trust is made. However, as the global economy continues to recover and the value of family enterprises continues to grow, I have found that more and more of our clients are seeking to utilise trust structures as a means of collectively holding family assets.