Family Business Leadership

Two critical areas are emerging as top priorities for Family Offices: private equity investments and succession planning. According to the latest Deloitte report, these priorities are driven by the dual objectives of achieving robust returns and Family Offices the continuity of family legacies. Private equity continues to attract significant interest from Family Offices, offering opportunities for substantial returns and direct involvement in business growth. The Deloitte report highlights that 2024 is expected to see a surge in private equity investments by Family Offices, driven by several factors: 1. High Return Potential: Private equity investments have consistently outperformed public markets, providing Family Offices with opportunities to achieve superior returns. 2. Family Offices appreciate the ability to exert more control and influence over their investments. This involvement ranges from strategic decision-making to active participation in company boards. 3. Diversification: With a broad array of sectors and geographies to choose from, private equity allows Family Offices to diversify their portfolios, mitigating risks associated with market volatility. Equally important is the focus on succession planning. Ensuring a smooth transition of leadership and preserving the family legacy are paramount concerns. The Deloitte report underscores several key aspects of effective succession planning: Family Offices are increasingly recognizing the importance of early and comprehensive succession planning. This involves identifying potential successors, providing them with the necessary training, and gradually introducing them to leadership roles. Establishing robust governance structures is crucial. Clear guidelines and policies help manage conflicts, define roles, and ensure accountability. Engaging external advisors can provide unbiased perspectives and expertise. Advisors play a critical role in facilitating family discussions, mediating disputes, and offering strategic insights. While the focus on private equity and succession planning presents numerous opportunities, it also brings challenges. Family Offices must navigate complex regulatory environments, manage intergenerational differences, and balance short-term gains with long-term objectives. However, with meticulous planning and strategic execution, Family Offices can turn these challenges into opportunities. Leveraging private equity to achieve robust returns and ensuring a seamless succession can solidify the Family Office's position and preserve its legacy for future generations. #familyoffice #familyoffices 

Deloitte’s Private Company Outlook: Family Enterprise survey is out! 📣🙌 Lots of interesting insights on the strategic priorities for family businesses.   What caught my eye? 👀 While many leaders of family owned businesses think their organization is ready for succession, the next generation might not be as eager or ready.    Although nearly half of the 100 U.S. family business leaders surveyed feel prepared for leadership succession, many organizations face significant challenges. To prepare future leaders, family enterprises are focusing on formal education (52%), on-the-job training (48%), and mentorship (45%) to develop future-ready leaders.   But the challenge isn’t just about skills; it's about interest. The survey cited a lack of interest from the next generation (37%) – echoing Deloitte's Gen Z and Millennial Survey, which shows only 6% are primarily driven to reach senior leadership. Unclear selection criteria (31%) and leadership skill gaps (31%) further complicate matters, according to our Outlook.   As executives at privately owned companies look to secure the long-term stability and growth of their organizations, understanding succession dynamics is crucial. Dive into the full survey for more insights 👉https://lnkd.in/eQCBEDaq   Curious to hear from my network. How is your organization preparing the next generation? Share your thoughts in the comments! 👇

🚀✨ Empowering Business Owners: The Power of Preparation in Succession Planning as You Grow ✨🚀 In the dynamic landscape of business ownership, preparation is the key differentiator between success and regret. Today, I want to share a tale of two businesses in the same field, of similar size, that considered selling at the same time. They had vastly different outcomes in their succession journeys. 🌟 Business A: The Power of Proactivity Business A understood the value of foresight and preparation. They dared to seek advice well ahead of any potential transaction, understanding the nuances of what a buyer truly values. By embracing this proactive approach, they built a robust strategy and, through informed implementation, positioned themselves as an irresistible proposition when the buying season arrived. The result? Business A secured a successful sale on its first attempt, attracting several excellent suitors. Its journey and transition were seamless, and it found itself aligned with a company that shared its vision and values. 💡 Key Lesson: Trust in preparation, embrace foresight, and seize opportunities with courage. 🔔 Business B: The Cost of Complacency Conversely, Business B chose to navigate the succession process alone, believing it possessed the knowledge to handle its succession adequately. After all, they also advised their clients about M&A due diligence. Despite their confidence, they were unprepared and didn't consider the buyer's mindset and expectations. Despite enlisting premier M&A firms along the way, it took three arduous attempts to secure a buyer. The aftermath? Regret. Not only did Business B face challenges in selling its business, but it also found itself disillusioned with the outcome and the company it sold to. 💡 Key Lesson: Friendly advice: never underestimate the power of preparation or the wisdom in seeking guidance. The tales of Business A and Business B highlight the undeniable significance of preparation in succession planning and preparation. Founding owners often have a high-risk tolerance, significantly different from their respective buyers. As business owners, being prepared gives you the choice to take advantage of the opportunities as they present themselves. Running the business you founded and getting it ready for a future owner require radically different skills and mental approaches. It takes time, energy, and resources to do both successfully. Your thoughts? Let's ignite a discussion in the comments below! 🔥🚀 ----------------------------------------------------------------- 🖐️Enjoy my content? If this was helpful, please let me know in the comments below. DM me if you want to come to our next webinar. I'm Adrian Bray. I share insights on growth, middle market, and exit preparation and planning. Click on my profile + follow + 🔔.

I have been helping a client with succession planning for the past three years and I tell you from experience, it's a process! Succession Planning is a business strategy that ensures operations continue smoothly after the leader transitions out of the business. So even if you're transitioning leadership to your children, give yourself five years to fully plan and prepare for it. Have a team to help you (including a corporate lawyer, financial advisor, CPA, succession planning advisor, valuation specialist, HR consultant). If you're thinking about exiting your business, here are some things to consider from a financial perspective: 1. The valuation of your business: a financial expert will assess your assets, liabilities, cash flow and potential for future earnings. 2. Current fiscal health of the business: The financial performance of the business directly impacts its valuation. Knowing fiscal health helps successors understand the true value of the business. 3. Your money team: Are the right accounting, financial and HR professionals in place to support the business even after you exit? 4. Ensure you have enough funds: Make sure you can cover the costs of exiting and retirement 5. Documentation - Make sure you have records of all financial policies, procedures and authorizations. 6. And, DEFINITELY have a fractional CFO on your leadership team to manage all of this as you move through this monumental moment in your life. Ready to talk with a CFO about succession planning? Schedule a financial consult at the link in the comments. . . #business #finance #smallbusiness #money

My financial goals used to be all about me. Now they’re focused on legacy. I no longer: - Envy the stuff others have - Build wealth for my own pride - Let money control my decision making - Put my needs ahead of my community - Ignore my long term vision when investing Now I: - Invest with the next generation in mind - Focus on building character over wealth - Build spaces that will be in our family forever - Prepare in decades rather than days - Let love motivate my choices My son will be watching and learning. I want there to be great lessons. Practically here’s how: 1. Define our family vision and print it out. 2. Give as an investment in eternity. 3. Invest some $$$ w/ a time horizon of multiple generations 4. Update our will and trusts to fund a portion to charity (Consider a transfer to a donor advised fund or family foundation for generational giving) 5. Prioritize prayer, service and community 6. Buy land and a vacation spot to create a “central location” as we grow. By being intentional we can craft an incredible legacy. Put your money where your values are! May your legacy planning be a testament to your faith and the impact you make in the lives of others. 🙏 God bless, Jack 🙏 PS. Send me a message when you’re ready to do the same

❓ Are You Ready to Shape the Future Leaders of Tomorrow? ❓ Are You Cultivating Leaders or Followers? ✅ The Answer(s) Matter!!! Lead by Example in Succession Planning & Career Transitions In my experience as a leader, I've learned that effective succession planning and career transitions are vital for any organization's growth. Here's how you can lead by example in these areas: 1. Transparent Communication: - Share your vision and goals for succession planning openly with your team. - Encourage honest dialogue about career aspirations and growth opportunities. 2. Identify & Nurture Talent: - Recognize potential leaders early and provide them with mentorship and training. - Create a culture where skill development is valued and supported. 3. Lead with Empathy: - Understand individual team members' career goals and help them align these with the organization's objectives. - Show genuine interest in their professional development. 4. Encourage Cross-Functional Experience: - Facilitate opportunities for team members to work in different roles or departments. - This broadens their skill set and prepares them for diverse leadership roles. 5. Model Adaptability: - Embrace change and demonstrate how to navigate through uncertain times. - Show resilience in the face of challenges, setting a strong example for your team. "Leadership is not just about giving energy... it's unleashing other people's energy." – Paul Polman #LeadershipDevelopment #SuccessionPlanning #CareerGrowth #EmpoweringTeams Engage with Us: How do you foster growth and readiness in your team for future leadership roles? Share your insights and strategies in the comments below!

PE investors acquiring family businesses has become increasingly common in the US, that being said, EY research shows more than 65% of upper middle market family business (business with revenue of $100m to $3b) owners want to transfer their companies to the next generation, even though less than 25% succeed. EY Family Enterprise Business Services Managing Director James B. Wood and I collaborated on an article highlighting the risks family operations can face during generational transition and strategies that can address these issues. Parallel governance ― establishing separate governance structures for the family and the business, with clear communication and direction flowing between the two ― often works best to support the cohesion, stewardship and competency needed to sustain a healthy business for generations.   https://lnkd.in/gYUegSnP #ey #eyprivate #familyenterprise #familyoffice #familybusiness #parallelgoverenance #governance #generationaltransition 

"My business is my retirement." You realize it's worthless right? Less than 1/3 of businesses ever sell. And you have NO succession plan. Yet you think someone will magically walk in the door with a check one day? Harsh truth: → Your business might be your life's work. → But to everyone else, it's just another asset. Your business is only worth what someone will stroke a check for it. → The market's flooded with businesses. → Buyers want turnkey opportunities. So, what's your REAL game plan? 1. Get clarity on the valuation Consider doing it like this: → 3-5 years of tax returns → Use a discounted cash flow model → Compare this to a multiple of EBIDTA This is the first thing we do for our business owner clients. We need to understand the true enterprise value and how it fits into the plan. 2. Build a succession plan → Groom a family member → Identify a key employee → Prepare for a sale You don't need to be dead-set on one of these. But you should have an idea in mind for at least one of them. 3. Assemble your dream team You can't go at this alone. Everyone you might need: → Exit planner → Accounting firm → Financial planner → Business attorney → Insurance advisor → Investment banker → Estate planning attorney Some of these roles can be done by 1 person. For example, we often play Exit and Financial planner, plus insurance advisor for our clients. The key is that they are all on the same page. 4. Diversify your retirement portfolio Your business can be a part of your retirement plan. But it shouldn't be the whole plan. Consider investing in: → Other businesses → Real estate → Stocks You need to acknowledge the risk that your business may not sell for what you think. All this to say... I understand where you are at. You've worked SO hard for your family. This business only proves that. But the stress is mounting. Your kids are never getting younger. You don't want to miss another soccer game. And you need a way out. You've always thought about planning. Now is the time. Need help figuring this out? Let's talk. My team has all the resources behind us to help you exit with clarity.

A bit about succession planning. The news that Rupert Murdoch is stepping down and his son Lachlan will succeed him is a seminal event in media, politics, sports, and entertainment. I've worked with News Corp. They are tough, bold, courageous, and extremely smart people. It comes straight from the top. It is how Rupert operated and how he expected his people to do business.    News Corp. is transcendent, operating on the world's stage and wielding incredible influence. What's next is already under intense speculation. While Lachlan introduces the world to his leadership style and business values, the moment underscores a key strategic objective that Founders must constantly consider: succession planning.    It's a Founder's responsibility to develop a succession plan alongside a growth strategy. The two may seem in conflict, but they speak to the fundamentals of leadership. A formalized structure (regardless of the timeline) also guards against the variable of sudden change, one I experienced at Forstmann Little. The impact or his passing transcended our company and many others. It also ultimately led to my founding of Bruin Capital.    Having the right succession plan in place can profoundly impact the business. If successful, it will be a testament to the company's originator - demonstrating fundamental strength of what they have created. An extremely good case study in succession planning is the National Basketball Association (NBA) and Commissioner David Stern handing the reigns to Adam Silver. Adam was a widely respected executive, yet there was a transitionary period before he formally took the role. After the transition of power, David continued to be a resource to Adam and the league.   Succession planning is a process. It should be thoughtful and experimental. Doing it right can take a decade, from identifying candidates, to pressure testing ideas and capabilities, establishing a long-range plan, and surrounding the potential successor with the best team and support system.     Undertaking this not only can ensure a company's upward trajectory but it can also revitalize employees and uncover unimagined potential. All Founders/CEOs need to guard against the downside of routine and regimentation. Consistency is an insurance policy against downsides, but can also inhibit critical and imaginative thinking. Succession planning creates a natural environment for employees to raise game-changing thoughts and ideas without seeming radical or disruptive.   Ultimately, with succession planning, you're really serving the greater good of the company's mission and, if you have investors, creating an insurance policy in their minds for its future. That, to me, anyway, is the definition of leadership. https://lnkd.in/eTY4KWgQ

You've built a family office empire. Your next generation should feel as passionately as you do, right? Statistics say no – 70% of families lose their wealth by generation 2, and 90% by generation 3. But, here's the good news, it's not impossible to change. The first step: start the conversation. - Share stories about how you built your wealth - Be transparent about your successes and failures - Inspire by showing them the impact they can make The second step: enable them to build their own passion for wealth management. - Let them start small with their own investments - Educate them on family values, estate planning and more - Introduce them to successful mentors The third step: empower them to take ownership. - Let them be part of the decision-making process - Give them leadership roles in the family office - Encourage their entrepreneurial spirit The key is to start early. Investing time in the next generation's development, inspiring their goals, and instilling your family values can, in the long run, pay rich dividends for the healthy continuance of your family office. #familyoffice #advisor