Separating family and business
Creating separate structures to manage the family and its business is important to avoid conflicts that will eventually destroy both entities, according to The Solutionist Group chief executive, John Kenfield.
However, Kenfield warned that there was a long process to be undertaken before any structures could be put into place, including finding out what a family really valued.
Addressing a Dealers’ Group conference in Melbourne this week, Kenfield said the process started with considering what the principles of the family are — a process that could be uncomfortable for some members but did result in the creation of a set of values a family could adhere to.
“I also want to know what the family is trying to achieve and once we have done that then they have a vision for future generations,” he said.
The next stage was to work out the conflicting dynamics of the business and the family in circumstances where a business may want to be competitive in a market but a family wanted to keep things going in a protective way.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
