Family Office Navigator

For other families, the family office might take on a more formal, legal structure from the beginning as the result of the triggering event, such as the sale of the family business where there is an immediate need for an organized and professional way to manage the liquid assets that are suddenly available to the family. When we ask principals about the origins of their family offices we often hear that these entities did not explicitly start as a family office, but rather served a specific need (such as being a holding company over some side businesses or as a mechanism to bundle the shares of one branch of the family), and that it then evolved into more of a family office over time, with the family repurposing it later on. Oftentimes they would only later call this entity a family office. The evolution towards a more formal and professional structure that handles the total family wealth spectrum is rarely a linear process. It’s a moving target that involves continuous development and adjustment to the changing needs of the family. It is advisable to have a structured approach to re-assess the purpose and strategy of your family office in regular intervals (e.g., every 5 years, with a rolling strategic plan), just like you would in any other business. In addition, there are certain major inflection points in the life of the family enterprise ecosystem – such as generational transitions or major liquidity events – where it makes sense to do a more holistic review of the overall purpose and direction of the family office and to chart a new course for the future. We encourage you to imagine your experience with the family office as an ongoing, lifelong learning journey, which needs to be treated as much a part of your planning and evolution as your family’s personal and commercial interests.

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