Approximately 80 percent of businesses around the world are family owned and operated —and it’s easy to understand why. In addition to lasting longer, these enterprises typically out-perform their non-family owned competitors. That said, working alongside family members comes with its fair share of challenges.1 To overcome them—while taking advantage of the inherent benefits—and successfully pass the torch to future generations, you need the right approach.
At Grant Thornton LLP, we understand the unique issues family businesses face when it comes to growth. That’s why our advisors take the time to determine your definition of success, your future goals and the uniqueness of your family dynamics and business structure. With that information in hand, we assume the role of “quarterback,” working with your various stakeholders and advisors so that decisions regarding your family, business and ownership are made with the big picture in mind.
The three-circle model
As family businesses grow and evolve, so do the number of stakeholders, which is why our family advisors employ the three-circle model when evaluating business decisions. This holistic approach—combined with training from the Family Enterprise Advisory Program (FEA) — means the needs of the family, the owners, and the business are all considered.
Whether you’re dealing with family members transitioning in or out of the business, passing wealth to the next generation or navigating the dynamics and complexities of family involvement, we can assist you by
• facilitating conversations to determine your family’s needs (e.g., goals, plans, role of family members, strategy, legacy);
• playing the “quarterback” role by managing the inter-disciplinary team, looking at the big picture, bringing in other advisors, and providing the ease of one key point of contact;
• assisting in areas such as succession and estate planning continuity planning;
• maximizing and managing the transfer of wealth between generations;
• mediating family disputes and helping sibling teams and blended families to work together; and
• developing family governance structures and facilitating family meetings.
Whether you’re trying to determine an equitable arrangement for your children—those that are either actively involved or not involved in the family business—hoping to set up the business so the owners can transition from active management to a governance role, or looking to engage new family members or employees in ownership, we can help you by
• facilitating a succession evaluation process and developing a transition plan;
• setting up structures to help implement tax transactions, facilitate a restructuring or assist with a reorganization;
• facilitating a management buy-out;
• conducting shareholder meetings; and
• developing ownership governance structures.
We can help you run your family business in a more profitable, successful and sustainable way by
• providing tax, advisory and assurance services;
• developing business governance structures;
• establishing advisory boards;
• help you move to professional management; and
• leading strategic planning for the business
Family businesses face unique challenges—and, in most cases, the solutions are complex. At Grant Thornton, our family business advisory team can help you adopt the right approach, mindset and perspective to facilitate productive conversations, find the answers you need and create a long-term legacy for your family.
To learn more about how we can assist your family business, contact our Family Enterprise Advisors (FEA) across the country.