LOCKING IN THE LEGACY:  LONG-TERM SUCCESSION ISSUESIN SINGLE AND MULTI FAMILY OFFICES      Presented by Håkan Hillerström ...
General Succession IssuesFamily Businesses and Single Family Offices Older generation staying in leading management roles ...
General Succession IssuesFamily Businesses and Single Family Offices Communication No decision Fairness (equality is not t...
General Succession IssuesFamily Businesses and Single Family Offices Will access to money/the business lessen my children’...
Succession Issues in Large Corporations Also difficult issue Recent cases  o Hewlett Packard  o Berkshire Hathaway – Warre...
No Planning  When it comes to SFO’s and MFO’s in  general, they seem to start with no or little  regard as to how the succ...
Succession in Single Family Offices(SFO’s) How many SFO’s do you know that have successfully moved from one generation to ...
Succession – Don’t wait until it’s too late!A) Stanley Ho – The fight for his fortune   B) Stanley Ho interviewed by his l...
SFO’s – Final Thought  Empower the next generation  Message to the older generation:  “You cannot rule from the grave”    ...
Succession in Multi Family Offices(MFO’s)  Enthusiastic start  But very few have any succession plans in place            ...
Different Succession Models for MFO’sA) Naked in naked out (like the big audit firms)B) Part-ownership with internal marke...
Different Succession Models for MFO’sD) Sell to larger organisation (defeating the purpose)E) Outside corporate shareholde...
MFO’s – Final Thought  Must discuss internally, make decision which model works best,  openly communicate to clients      ...
Conclusion  Plan the succession right from the start  Take time – succession plans are not done overnight  Any succession ...
Conclusion  Get the next generation involved – commitment follows  Empower the next generation  Don’t sit on idle money ma...
Conclusion “Succession is like a relay race…..Whoever succeeds must be up to speed with the business and able to propel th...
Your contact               Håkan Hillerström             Tel: +41-22-827 85 00           Mobile : +41-79-200 41 30        ...
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Locking in the Legacy: Long-Term Succession Issues in Single and Multi-Family Offices - Presentation: Håkan Hillerström, Håkan Hillerström Family Business & Family Office Advisory - Elite Summit

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For more information contact: emailus@marcusevans.com

Håkan Hillerström who is the Owner, Håkan Hillerström Family Business & Family Office Advisory shared his presentation entitled "Locking in the Legacy: Long-Term Succession Issues in Single and Multi-Family Offices"

Join the November 2014 Summit along with leading European family offices and global asset managers in an intimate environment for a focused discussion of key new drivers shaping wealth management strategies today.

For more information contact: emailus@marcusevans.com


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Locking in the Legacy: Long-Term Succession Issues in Single and Multi-Family Offices - Presentation: Håkan Hillerström, Håkan Hillerström Family Business & Family Office Advisory - Elite Summit

  1. 1. LOCKING IN THE LEGACY: LONG-TERM SUCCESSION ISSUESIN SINGLE AND MULTI FAMILY OFFICES Presented by Håkan Hillerström Elite Summit, Montreux – 31/5 2012
  2. 2. General Succession IssuesFamily Businesses and Single Family Offices Older generation staying in leading management roles too long Older generation hanging on to the ownership power too long Education, training, mentoring and integration of the next generation Marriages, divorces (and prenuptial agreements) Family conflicts Solutions for generations to come 2
  3. 3. General Succession IssuesFamily Businesses and Single Family Offices Communication No decision Fairness (equality is not the same as equal) Active and passive family members Lack of rules Too many family members Solutions for generations to come 3
  4. 4. General Succession IssuesFamily Businesses and Single Family Offices Will access to money/the business lessen my children’s motivation and desire to work (hard)? Will my children consume the wealth in wasteful ways? Entitlement versus merit Rights versus obligations Investment versus spending Solutions for generations to come 4
  5. 5. Succession Issues in Large Corporations Also difficult issue Recent cases o Hewlett Packard o Berkshire Hathaway – Warren Buffett o News Corporation – Rupert Murdoch o Apple – Steve Jobs → Tim Cook Solutions for generations to come 5
  6. 6. No Planning When it comes to SFO’s and MFO’s in general, they seem to start with no or little regard as to how the succession will be handled. Solutions for generations to come 6
  7. 7. Succession in Single Family Offices(SFO’s) How many SFO’s do you know that have successfully moved from one generation to the next? How many SFO’s do you know that have a good succession plan in place both with regard to ownership and management? Should we set a time limit on the SFO’s existence – a self destruction button after say 25 years? Solutions for generations to come 7
  8. 8. Succession – Don’t wait until it’s too late!A) Stanley Ho – The fight for his fortune B) Stanley Ho interviewed by his lawyer Another case : Liliane Bettencourt, L’Oréal Solutions for generations to come 8
  9. 9. SFO’s – Final Thought Empower the next generation Message to the older generation: “You cannot rule from the grave” Solutions for generations to come 9
  10. 10. Succession in Multi Family Offices(MFO’s) Enthusiastic start But very few have any succession plans in place Solutions for generations to come 10
  11. 11. Different Succession Models for MFO’sA) Naked in naked out (like the big audit firms)B) Part-ownership with internal market but difficult when growing fast – becomes too expensiveC) Stable, large owner in background (eg. Bessemer, Quilvest, Sand Aire) Solutions for generations to come 11
  12. 12. Different Succession Models for MFO’sD) Sell to larger organisation (defeating the purpose)E) Outside corporate shareholder (eg. Flemings, Standard Chartered)F) Old Swiss private banks model – personal and entire liability Solutions for generations to come 12
  13. 13. MFO’s – Final Thought Must discuss internally, make decision which model works best, openly communicate to clients Solutions for generations to come 13
  14. 14. Conclusion Plan the succession right from the start Take time – succession plans are not done overnight Any succession plan must be thoughtful and well communicated Create an Emergency Plan Ensure successors are properly trained and prepared Solutions for generations to come 14
  15. 15. Conclusion Get the next generation involved – commitment follows Empower the next generation Don’t sit on idle money make sure future generations get the chance and are encouraged to continue to invest Solutions for generations to come 15
  16. 16. Conclusion “Succession is like a relay race…..Whoever succeeds must be up to speed with the business and able to propel this stillfurther. At the same time, the predecessor must be comfortable that he can pass onthe baton and that it will be in safe hands”. Solutions for generations to come 16
  17. 17. Your contact Håkan Hillerström Tel: +41-22-827 85 00 Mobile : +41-79-200 41 30 hakan@hillerstrom.ch www.hillerstrom.com 100, route de Frontenex CH-1208 Geneva Solutions for generations to come 17
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