Creating a Family Office- Key Issues
Family Offices are basically private companies, that have been established to manage the finances of wealthy families and individuals. Family Offices are one of the fastest growing businesses in the world.
When done properly, a Family Office can have significant benefits, however it should be approached in a similar manner to any other business.
The first step it so establish a “mission statement” to provide guidance on how the decision making process will work. The mission statement should cover many issues including costs, security, risk, vision, philanthropy, wealth preservation, roles of the family members and accord and discord.
The second step is to determine who will be involved in the Family Office.
The third step would include a determination of what services the Family Office would provide.
The next step would be to ascertain the appropriate type of entity for the Family Office and the location. These issues should be discussed with the appropriate legal and accounting professionals.
In order to establish a successful Family Office, it takes a well thought out plan with a clear mission statement along with establishment of governance, flexibility and the ability to adapt to changing circumstances and new generations. We feel that it is absolutely essential to utilize the services of professionals with expertise in working with Family Offices.
As an Executive Search and Advisory Firm that has been working with Family Offices for over 30 years, we can assist with establishing a Family Office or restructuring a Family Office to meet the needs of the new generations.
For additional information on Family Office issues please contact: FON Search, Michael Rosenblatt at: michael@questorg.com or via telephone 212-971-0033.
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