Part 2 - Defining our Legacy - Flipbook - Page 19
It is a great privilege to advise and support family businesses – not least because
of how fascinating it is to be involved at close hand as they evolve and adapt over
generations. The question of legacy is of course at the heart of this process of change.
Questions around what elements of a founder’s original vision and ethos are passed
from one generation to the next, as well as what processes and structures are employed
to support that to happen are an everyday part of our discussions with business owning
families.
There are particular challenges that arise when family businesses begin to diversify,
often a prompt for families to consider how they should define and express the purpose
of what they do. Diversification can also provide an opportune moment to begin to
protect the liquid wealth and engage the next generation in investment plans and ideas.
“
Beginning a diversification plan often means
creating suitable legal structures to hold new forms
of wealth, which can be designed to involve the next
generation. Clients frequently wish to use company
or partnership structures to hold family wealth, and
to issue shares or partnership interests to the next
generation to enable them to become more directly
involved in conversations about family wealth. It
is possible to design these structures so there are
appropriate legal safeguards over control, dividends,
share transfers and other material matters, which
gives families comfort that they can work well and
better facilitate ‘next gen’ engagement.
M AT T H E W B E N N E T T, PA R T N E R AT B O O D L E H AT F I E L D
S TA R T I N G T H E L E G A C Y CO N V E R S AT I O N
