A family-owned business faces the challenges that every type of business faces, but, unlike a non-family run company, it must also deal with family issues.
Where other businesses might measure success in quarters, family-owned businesses measure them in generations. Where others might focus uniquely on value, family businesses also focus on values, including preserving the company for the next generation.
Family dynamics and non-business considerations can derail even the most profitable enterprise, particularly when catalysed by events such as a generational transition, or an external economic crisis.
At PwC, our Family Business Advisory Team has experience in working with families both large and small and assists them in creating family governance structures that achieve sustainable long term success.
As per the PwC Family Business Business Survey 2012, the issue of successful family business continuity is a major concern as a significant number of family businesses are to go through a generational change in the next 5-10 years.
We share your concerns and skepticism and we are here to assist you. We have a keen understanding of the unique dynamics of family businesses, and we have the tools, experience and focus to help you optimise the positive forces in your family enterprise, while anticipating and minimising any conflicts or perturbations.
Governance is about accountability and communications. At PwC, we understand the importance of local concerns and traditions and we can help family businesses through a range of governance services:
• Assessing corporate governance, family and ownership structures
• Assessing board activities and recommend improvements
• Designing family protocols and governance structures such as Family Councils and Shareholder’s Assemblies
• Providing structured brainstorming workshops involving key decision makers/ owners to discuss goals, opportunities, challenges, concerns and their vision for the company
• Design of succession planning strategy, including timing, future ownership and management shares, roles and responsibilities of family members
• Assist in the communication of the succession plan and provide long term guidance throughout the process
Our principal aim is to address the key issues faced by family businesses; continuity planning, succession planning and conflict management.
Determining the optimal strategy for a family owned business is not easy. Further to the common concerns any company has, a family owned business has an additional layer of concerns including succession and financial planning, long-term stewardship, tax structuring, and legal matters.
At PwC, we have extensive capabilities, resources and people dedicated to helping family businesses assess (and reassess) their operations and potential for growth in an increasingly competitive landscape.
Our advisors can help you develop and implement sophisticated strategies that are optimised for your unique business and family. We use creative analysis and rigorous tools to ground our insights, and generate key initiatives to measure and identify any areas needing adjustment as your strategy rolls out.
We can assist you in:
• Aligning of vision and mission of the family business
• Enhancing company’s values
• Development of corporate strategy
• Development of financial strategy
• Identifying achievement to date and the company’s strategic objectives
Embedded in all our services is an understanding of the powerful role innovation plays in a growth strategy. We help our clients structure and allocate their limited resources to deliver a profitable return on investment and market share.
At PwC we can help you to draw on your core skills and resolve a range of operational issues, increasing efficiencies.
We can assist you in:
• Re-designing organisational structures and revise spans of control to increase effectiveness and facilitate decision making
• Defining roles and responsibilities
• Development of effective corporate performance management tools such as KPIs, etc.
• Designing and implementing performance appraisal systems and reward systems
• Providing suggestions of improvement of current working and management practices
Partner, In Charge of Private Wealth Services, PwC Cyprus
Phryni Yiakoumetti Mina
Director, Private Wealth Services, PwC Cyprus
Natalie Vassiliou Moustaka
PwC Legal, Solicitor/Senior Manager, PwC Cyprus