Business families naturally invest in professionalizing their management group, often without realizing that their ownership group requires as much attention.
According to a 25-year survey of 3,250 instances of generational wealth transfer from the Williams Group, only 3% of the failed wealth transitions were due to poor legal, tax or investment advice. 97% of the failures were in fact attributable to the family itself: due to a lack of family mission, an inadequate preparation of heirs or a breakdown of family communication and trust1.
Families spend on average $1 million annually to protect and grow their assets for every $100 million of assets they own, whereas they only spend $30,000 per year on the development of the next generation2. Only 14 % of Next Gens are considered very prepared to become good stewards of the family legacy.
The quality of the decisions a family system makes depends a great deal on the individual and collective capabilities of its owners. Engaging effectively and productively as family owners requires continuous training and development.
Nicolas Hollanders and Honora Ducatillon, Head of Family Office Services Pictet Wealth Management co-authored this article just published in Pictet Group website and that has been made available for the public in general. Visit the external link below or press the download button to get the article