Ahead of the marcus evans Latin Private Wealth Management Summit Spring 2017, read here an interview with Veronica Yepez discussing how wealthy families should involve their children in the family business

1. Involving the Next Generation
in the Family Business
Interview with: Veronica Yepez,
Founder, Perpetum Consulting
“It is never too soon to talk about the
family business,” says Veronica Yepez,
Founder, Perpetum Consulting. “The
rule is that the business should be
treated as a business and every
member should live his or her dream. It
is fundamental to determine if they are
a good fit for each other,” she adds.
Yepez is a speaker at the marcus
evans Latin Private Wealth Manage-
ment Summit Spring 2017.
When should wealthy families
involve their children in their
business? When is the best time
and why?
It is never too soon to talk about the
family business; whether the children
decide to join or not, learning about the
family business is a good training on life
and work skills. It often happens
unconsciously at a very young age
simply by watching and listening to their
parents at home.
The decision to invite the children to be
part of the business is often very
emotional. Such a decision is one of the
most important family transitions and in
the best scenario, the business will
already have clear rules to determine
when and how children are allowed to
join.
The senior generation must evaluate the
current developmental stage of the
business, its future and determine if the
business shall continue as a family
business for another generation. They
must make sure that the business
requires someone with the set of skills,
talents and interests their children have.
The rule is that the business should be
treated as a business and every
member should live his or her dream. It
is fundamental to determine if they are
a good fit for each other.
How should they engage the new
generation? What strategies would
you propose?
The senior generation must define the
kind and level of engagement they want
to offer their children. Based on such a
decision, different strategies can be
crafted that may include an internship,
employment, sharing income, sharing
management, transferring legal
ownership or granting voting powers.
It is crucial to (i) have a robust family
governance structure which includes the
rules for hiring, talent retention,
promotion, compensation, communica-
tion and (ii) to create a career plan for
the members of the new generation.
What are some of the issues they
run into? How could they be solved?
One of the most common and detrimen-
tal is the inadequate preparation of
heirs. It is important to design a
strategy that takes into consideration an
early beginning, a long-term vision,
learning to communicate, managing
clear expectations, working under the
principle of merit and managing
entitlement.
What is the role of the patriarch in
the family?
The patriarch has a pivotal role and
most likely he will be the one defining
the greater purpose of the family
business. In consequence, it will be up
to him to determine if the business is
meant for future generations.
At home, the patriarch will define the
role the business takes within the family
dynamics and through his parenting he
will help the children develop fundamen-
tal abilities. Some of those abilities may
eventually be their greatest tools at
work, such as the ability to communi-
cate, to think outside of their own
interests, to make decisions, to seek
consensus, and to want fairness and
justice for others.
The senior
generation
must define
the kind and
level of
engagement
they want to
offer their
children

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The Latin Private Wealth Management Summit Spring 2017
The Latin Private Wealth Management Summit is the premium forum bringing
leaders from Latin America’s leading single and multi-family offices and service
providers together. Taking place at the Trump Ocean Club, Ciudad de Panama,
Panama, April 27-28, the Summit offers service providers and executives from
single and multi-family offices an intimate environment for a focused discussion of
key new drivers shaping the future of the industry. The Summit includes
presentations on asset allocation and diversification strategies, the natural cycle of
an enterprise, economic perspectives for Latin America, and family and business
succession.
http://latinpwm.marcusevans-summits.com
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To view the web version of this interview, please click here:
http://events.marcusevans-events.com/latinpwm2017-veronica-yepez
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