Family businesses are unique in their outlook and their inner dynamics
Every family business is unique. Sometimes it is said that families get in the way of business, yet they remain the bedrock of the UK economy and are vital to its success.
Using a tried and tested methodology, our aim is to gain a deep appreciation of the family dynamics and relationships between generations, siblings and cousins within each business. Key areas for review and discussion include:
- Values of the family
- Vision for and purpose of the family business
- The family’s commitment to the business
Only by understanding the above can we truly support the family and the business in developing succession strategies that will reflect the goals of both.
Concepts of stewardship, legacy, fairness, opportunity and the long term are often the main drivers of the family business. Profitability can also be an important consideration, although frequently a much longer-term one than in other businesses where third party pressures can influence decision making and necessitate shorter term actions. It is no surprise, therefore, that the asset base of second and third generation businesses can be substantially more than their non-family equivalents, making them more resilient in times of economic uncertainty.
Our family business consultancy services include:
- Facilitating a family business constitution – the long term succession plan
- Structuring a family council and governance issues
- Classic succession planning, i.e. shorter term financial planning
- Help in planning for the next generation
- Conflict and remuneration –what is fair?
The Praxity 2015 Family Business Survey
This is the second year our Praxity group have run the Family Business Survey, which was again well received. The group believes that the survey provides family businesses with a balanced report on the opportunities, challenges and insights of their peers. The survey also allows us to determine a family business ‘agenda’ and monitor and analyse any trends highlighted.