It is common in these times to hear about “family shareholder agreements” or “family deed”.
And the natural question that many of us ask ourselves is what exactly is this? .
I would summarize it in the following:
They are the rules that regulate the behavior and decision-making of the members of a family regarding the assets and estate of the family business.
With the main purpose that this legacy is managed in an orderly and efficient manner so it can grow and last for generations.
“Ultra high net worth grandfather, millionaire father, poor grandson” – Unknown
When is the best time to start?
There is no bad or wrong time to start.
But without a doubt the determining factor in how easy or difficult the process can be is the family’s willingness to accept the development process and its implementation.
How to start and with whom?
As I have already mentioned in previous articles.
Each family is a different universe, with particular characteristics and needs, which is why the key.
Once the decision is made to start the process, is to have the support of an expert from start to finish.
This person should have the necessary experience, skill and capacity to select and combine the perfect team of specialists in different fields.
From lawyers, financial counselors, to family counselors if necessary.
So that they can help identify the exact and real needs that your family has.
And thus be able to design a family deed, tailored made that works and is possible to execute over time.
What role does executability play?
This verb that comes from the Latin word “exsecutio” and it plays a stellar role.
In fact, it should always be the cardinal point that guides the process of designing the family deed, always applying the principle of “the power of simplicity”.
As often trying to be very sophisticated, we tend to design guidelines that on paper look very good, but that over time are not executable.
This results in waste of time, money and generates problems instead of solutions.
To conclude, we are living through times of change that bring great opportunities for those family businesses that are well organized.
Which is why the question that I would recommend asking ourselves is:
Are we prepared?
Juan Sebastian Vayas.
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