A clear guide for family relationships and their business.
Creating a family governance plan can feel like an uncomfortable task for many families. Many do not want to discuss with their family who is in charge, how wealth will be transitioned, who gets the family business, and so on. Making the governance, however, is vital for high-net-worth families because it lays out clear rules regarding the relationship of a family and the family business.
Before we dive into how Goldbach Capital’s services can help you, let’s cover exactly what we mean when we say “family governance.” This term refers to the processes and structures that a wealthy family uses to organize themselves and guide the relationship with their company. A family governance plan sets clear boundaries that will create harmony between family members, a focused business, and easy transition from one generation to the next.
Family governance may answer the following questions about a family structure and its future:
• Will the family get along while working together?
• When will the heads of the family business retire?
• What is the role of shareholders who do not work for the family business?
• Will the next generation be prepared to oversee investments and advisors?
• Who will be the next business leader? Will it be a member of the family?
• How can we preserve our values while continuing to adapt and innovate the business?
The answer to these questions can easily be found in a thorough family governance plan. It also opens up a forum to prepare for the future, keep open communication, and recognize and resolve family conflict.
Ensuring your future family has the education they need to succeed is one of the many privileges of being financially savvy, and is a vital part of family governance. Incorporating a next-generation education plan will ensure that your family members are ready for the responsibility.
When working with our family office services, we are ensuring that you are on track to grow your wealth for not only your lifetime but for generations to come. In order for a family to find success in increasing their human capital, individuals and families need to prepare the next generation to take on the responsibility.
Goals may include how to obtain wealth, grow it, where to donate it, and properly spend it. The main goal is to create a healthy relationship with money with the next generation in your family. We can prepare a full, hands-on plan for you and your family to ensure future success and growth. No two families are the same. Each has their own goals, values, assets, and unique situations. Because of this, there’s not one plan that can be used across the playing field. Having a one-of-a-kind approach to wealth is key.
Creating a Plan
Our expert team can help you form your family governance using a hands-on approach with your values and goals in mind. While there is no perfect plan for every family, there are some key elements that are needed.
One of the first steps in planning is going to establishing the values that are important to our family. A governance is not made without reason. It’s used to achieve a family’s goals and objectives. Having a discussion with all members of the family to determine its core values will allow everyone to be on the same page. This will create a plan that sticks to your goals and families needs.
It is always key to take your time. Rome was not built in a day. Creating a governance will evolve, as family members review, reflect, and change their behaviors and habits. Once a plan is in place, it will need continued attention and commitment. A family governance is put in place for a reason and to be followed.
Complexity does not necessarily mean effective. Keep the family governance simple. Creating new boards, committees, and councils can be overwhelming.
Open communication and planning together will ensure that the whole family is on board. This may be the most important part of the outline because it greatly affects how all of the other steps will play out. Keeping a clear and honest line of communication can achieve family cohesion and allows all members of the family have a say.
At the end of the day, creating a family governance will challenge individuals to maintain flexibility. Even the best plans need some change. There is nothing wrong with living with a governance for a year and realizing some things could be amended. In fact, every few years we believe that families should conduct a review of the governance to make sure it is sticking to the values and goals.
Goldbach Capital Family Office
It is never a bad idea to ask for help. No one expects a single person to take care of their finances, manage a portfolio, saving for retirement and education for future generations, manage assets, and more on their own, especially when they have a large number of expensive assets.
To remedy this, Goldbach Capital offers family office services to clients and families with assets under our management in excess of CHF 10 MM.
Goldbach Capital has the knowledge and resources to become the trusted partner of wealthy families. We offer a comprehensive range of services, by combining proprietary expertise with an external pool of first-class advisors.
Each client can decide which modules he wants to engage Goldbach Capital on. Thanks to its efficient and cost-effective solutions, Goldbach Capital is a credible alternative to existing or projected in-house organizations.
Goldbach Capital utilizes close interaction with our clients as the heart of our process in order to fully integrate each family’s vision and core values. We pride ourselves on being a fully independent entity, able to activate all external resources and competencies needed in order to deliver services with asset protection, growth, and monitoring, life simplification, and cost-cutting at the forefront of our strategies.