Institutionalizing a company is by itself insufficient in terms of achieving the sustainability of family businesses; family relations should also be institutionalized. A family constitution refers to the whole of the policies that govern the interaction of the family and the business. The family constitution seeks to ensure the growth and sustainability of the business, the continuation of “Family Ownership,” while bolstering family strength.
Constructing a family constitution precludes any conflicts that may arise between family members and also helps to find methods of resolving potential conflicts before they emerge, thus aiming to sustain the development of the business in the long term.
We support our clients by offering to formulate a Family Constitution that stipulates the combination of policies that outline the family’s interaction and commitment to the mission, philosophy and core values of the business.
All through our service support, we organize meetings with family members to understand their needs and expectations and we construct the family constitution accordingly.
We offer services in a range of areas geared to the needs and dynamics of the family business: family councils, family values, shareholders structure, board structures, family appointment criteria, shareholding, retirement, family members not employed by the company, profit share and profit distribution, dispute resolution and sanctions regarding breaches of the constitution.
Succession planning is a process of handing down the management of a company to future generations. Research indicates that only 35% of family-owned businesses survive into the second generation and 15% survive into the third. Developing strategies and creating a succession plan for sustainability and the future is crucial for businesses.
Our professionals offer services in assisting the creation process of a succession plan that will influence the business, the family, and also key executives in order to ensure the transfer of corporate governance to future generations. In succession planning, we prepare a leadership and management structure based on the nature of the company and its current position, identifying successors and creating a roadmap for the process of the transfer of ownership.
