Pranav Sayta, India Family Business Leader, EY.
Succession is one of the most critical issues encountered by family businesses. Several factors including family dynamics and the emotional connection that family members feel toward their businesses can make addressing succession a complex issue. Continue reading
Since the Global Financial Crisis, governments around the world have cracked down on financial markets. Not before time, say those involved in family businesses — many of whom believe that the financial world, or at least parts of it, has become too unruly and, indeed, too big.
But the crackdown might have unexpected consequences for family businesses, or, at least, for family offices managing the wealth generated by large family businesses.
Despite having many substantially wealthy families, there are few single family offices (SFOs) and even fewer multifamily offices (MFOs) in the Middle East. Some estimates put the number of SFOs at between 60 and 75. Whether that’s right or not, most analysts think that there are many more families that could afford to run a family office than are currently doing so.
In most cases, families that own businesses don’t just own the family business. They also have additional assets, such as real estate and liquid assets. With most family businesses, it’s not just about a single asset, it’s about multiple assets. Indeed, in most cases, it’s about multiple family members, often with divergent interests, controlling multiple assets.