Many of our clients are start-up first generation families in business. The owner might not yet be married or have children. However, the desire to create something and leave a legacy is there. The founder might be doing it alone or working in partnership with other entrepreneurs for a common purpose.
The long-term planning and short term positioning for an aspirational entrepreneur is important. The careful choice of asset structuring, gaining control, creating great after-tax outcomes, together with future flexibility forms a bedrock for how the aspirational family member can start to become wealthy, help their immediate family and then transfer the wealth later on to the next generation over the next few decades. The tactical decisions made early on can provide a springboard for an aspirational family to capitalise on smart decisions for investment back into the business or for the families personal finances.
An established family in business will typically have traded for several years and built up a history of performance.
For family businesses who are established, the focus is often on using tax structures to provide for future retirement, increasing the after-tax wealth, clearing up historical positions and ensuring that the business reporting is functional and helps owners take the business to the next level.
We also ensure that the whole family is engaged with us (even at a small level) to ensure that the seeds of succession are starting to grow. Our unique “one up one down” model for family communication ensures that tax opportunities are maximised and the knowledge transfer for the family business occurs with respect and collaboration.
The sale of the family business might be the most significant financial transaction to a family. Helping the family with sound governance, clear reporting, well presented sale proposals and a smooth due diligence process is an important part in ensuring the sale goes as intended.
The documented tax advice on the sale is important to give the family guidance on how to maximise the after-tax outcomes from the sale and ensure the sale proceeds are invested tax effectively.
Every generation in a family business is important. The transfer in ownership from one generation to the next represents significant opportunity to embrace new technology and help the family reduce personal debts and realise cash from the transfer in ownership.
Detailed experience on how successful business families transfer from one generation to the next can significantly help with the stress of transfer together with creating great new outcomes.
At Westcourt we have helped families with significant wealth, transfer their wealth and business interests across generations.