Many family businesses benefit from seeking outside help in negotiating these challenges. Grant Thornton’s Family Business Consulting team have collectively devoted decades in providing family businesses with the benefit of their experience. Our team members have individually pursued the highest levels of family business education, including achieving accreditation with peak body Family Business Australia, as well as internationally with the Family Firm Institute. Our consultants have built on this experience and knowledge to create unique and valuable advisory processes which have assisted many families to successfully overcome their challenges.
Strong family governance and robust but respectful communication is critical to managing relationships between family members, shareholders and business management, and are key elements in maintaining family harmony and business continuity.
Family governance is not “set and forget”, it evolves over time as the business continues its development journey and also as the family moves through its lifecycle.
Our experienced and qualified consultants can assist by facilitating the development of governance structures (including family charters, family councils and family forums) as well as introducing processes and tools to help families achieve better communication, collaboration and family decision-making which leverages a family’s competitive advantage and provides alignment of family and business values.
Transition is inevitable, in business and in life. Many family business owners hope to pass their business down to the next generation of family members; these same owners will dream of a comfortable and fulfilling retirement. However, research has shown that most business owners do not properly plan for generational succession, nor are the next generation adequately prepared for the responsibilities involved.
The best transition outcome will only be achieved if there is an adequate level of time and resources devoted to planning the succession process. Grant Thornton has developed a unique 7-step succession planning programme called “FREEDOM” which focuses on the key success factors for generational succession.
Our process includes consideration of estate planning for the incumbent generation, involving a holistic approach to family assets both business and personal.
Family company boards often benefit from independent, external support particularly in the early stages of the board development. Our expert advisers are experienced in helping families manage their business governance including:
Family groups face unique challenges in ensuring their taxation responsibilities are managed efficiently, as business taxes are often intertwined with personal and family taxation structures. Particular skill is required to negotiate the raft of taxation rules involved, including shareholder and director loans (Division 7A) and legislation impacting the operation of family trusts.
Families must also consider protection of business and personal assets when designing the most tax-efficient structures permitted within the law. Our experts are experienced in designing bespoke taxation solutions for families in business which properly consider the various regulations, opportunities and pitfalls which can await the unwary.
Effective management of family wealth is about growing and protecting wealth, ensuring lifestyle needs are met and leaving a lasting legacy. It’s about making sure your investment approach meets your personal objectives and appetite for risk.
Supporting your family wealth management is a specialist team providing personal strategic wealth advice, SMSF support and set up, insurance and risk management. As part of your broader Grant Thornton advisory team, this ensures advice is aligned to other considerations such as tax treatments and estate planning.
Robert Powell is National Head of Grant Thornton’s Family Business Consulting team. He has many years’ experience in assisting family groups with a variety of business and family challenges including generational succession planning and implementation, and best practice in family governance solutions.
Robert is a Specialist Accredited Adviser Member of Family Business Australia, he holds certificates in Family Business and Family Wealth Advising with the Family Firm Institute, and is a Fellow of Chartered Accountants Australia and New Zealand.
Robert was the inaugural recipient of Family Business Australia’s Accredited Adviser Award for 2018/19.
In times like this, businesses need to show empathy and that they truly value their people. Family businesses have an edge, in the way you view your team like family. Another significant advantage over other businesses is trust. You understand that trust is hard-earned over years and sometimes generations. It’s learned from living behaviours which typically put the interests of the family behind the business stakeholders, including customers, suppliers and employees. Effective leadership over the coming months and even years will help you to maintain trust with your stakeholders.
How you lead your family business will be crucial to come out the other side of COVID-19. Owners are often so busy in the day-to-day activity that it can be hard to find time to focus on leadership. We’ve compiled this toolkit designed to help you navigate the crisis and minimise the impact on your business, and your family.
