You've perfected your craft, now you're ready to take your family-owned business to the next level. Designing a family office could be what you need to get you there. In this installment of our eight-part series, “Pivotal moments for family enterprises,” we’ll zoom out and take a deep dive into the benefits and considerations of creating a family office, from managing wealth to preserving and growing prosperity, and protecting your legacy.
As family businesses surpass major growth milestones, many decide they need help directing the increasingly complex aspects of a flourishing enterprise that may extend well beyond the core business.
Often, employees from the family enterprise and key members of the family handle these new tasks along with their day-to-day responsibilities. However, as the demands associated with overseeing new investments and wealth generated outside the family enterprise increase or in the event the enterprise is sold, it is essential that families have the appropriate structures and talent models in place to capture potential opportunities and mitigate risks.
Many family enterprises have spent a significant amount of time and energy building their enterprises and growing their wealth. The effort needed to grow and preserve that wealth outside the business requires a similar effort, and a family office can be the mechanism to formalize the future structure for the family.
From staffing, skills, and risk management right through to understanding the fine print and creating an enduring legacy—there are key questions to ask when considering establishing a family office.