Event Presentation - How to prevent Asian business families falling prey to common succession planning problems?

Equiom Group

Oct 27, 2016

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Speaking at the Hubbis Asian Wealth Management Forum 2016 in Zurich in late October - Hans Diederen of Heritage Trust Group explains the need for a holistic approach to handle the growing need for family business succession planning, and ensure value for future generations.

Hans Diederen
Head - Family Office Services
Heritage Trust Group

Smooth family business succession continues to be a real challenge in Asia – it is well-known in the region that wealth often doesn’t tend to pass through more than three generations
Among the hurdles is the fact that the majority of businesses in the region are family owned or controlled, combined with the demographics at play
In many cases, succession planning fails because of several key factors: there is no urgency until it is too late; it is always easier to resist change or postpone the discussions; there is a lack of understanding about what is required; next-generation leaders might lack experience or courage in confronting their parents; and the perception among clients that it costs too much
Without strong succession planning, family reputations could be damaged, potentially destroying economic value
Some techniques include a family tool-kit to work collectively together. Facilitating family meetings might also work, to enable agreement on values, vision and a shared purpose
Ultimately, succession planning is a process, not an event