Family Business Services

Family Business Services

Challenges and Prospects

Challenges and Prospects

Family Businesses play a significant role in the world. According to KPMG’s researches, family businesses account for about 60% to 80% of the entire global enterprises and also make up more than 40% of the Fortune Global 500. Family businesses create over 70% of the world’s GDP. Compared to general private company, family businesses are totally different in essence. Under the operation model of taking the family as the core, the vision of enterprise owners and the family members have become the push and pull factors for the growth of family businesses. Therefore, the right approach in making a family business grow continuously and in meeting the expectation of every family member is the key point and the most essential aspect one must consider in order to be successful in handing down the business to the next generation.

 

Inheritance and Succession to face the challenge from generation to generation
According to the research conducted by the Family Business Network, there are about 70% of the family businesses globally that cannot be passed on to the second generation, and 90% of them will not be able to make it to the third generation. Therefore, making and implementing a succession business plan is very important. A comprehensive survey on the family businesses in Taiwan shows that Taiwan's economic development is closely related to family businesses. A number of family businesses are over 70% and its market value accounts for over 60% of the publicly listed and OTC enterprises in Taiwan, which are mainly in the financial, industrial and information technology industries. The average years of family businesses in Taiwan is about 28 years, and the average age of business owners is around 60 years old. Therefore, it’s about time for the succeeding generation to make the right decision for a successful family business. Unfortunately, there are still more than half of the business owners in Taiwan who have not yet made any plans in entrusting their business to the next generation. In recent years, the issues related to enterprise inheritance, cultivating the preceding successor, and family business governance have been revealed along with the aging family business owners. With all these concerns, there’s a call for an urgent need to come up with an appropriate approach in dealing with a successful family business in the near future. 
 

KPMG Family Business think tank, the most trustworthy consultant for you

KPMG have invested a lot of resources and enthusiasm in different area of family businesses. We have cooperated with many family businesses for over 100 years since our establishment. KPMG family business think tank gathers the top experts in the field of family business from all over the world. We understand their needs and make sure they are well taken care of, and in return, we have their full trust and confidence. Our consultants will combine all the network resources of our global members to provide the most efficient, professional, and optimal solution in assisting every family business.

Family Business Service

Succession and next generation

  • Invest time to get a holistic view of all the components of the family, the business and other stakeholders.
  • Have discussions on the implication of any decisions the family may take on the succession.
  • Assist the successor to better take over the role.

Governance

  • Establish regular dialogue to discuss family and business issues.
  • Help the family to formulate a strategy for the future.
  • Ensure that the key decisions are as good for the business as they are for the family.

Growth

  • Develop family business growth strategy and implement it effectively.
  • Help the family manage the Family Component: strategy, governance and generational issue to unlock future growth potential.

Assurance

  • Be proactive - Anticipate change and the risks.
  • Design a financing strategy : identify needs and sources, structure and obtain financing.
  • Manage tax issues for both family members and the business.

Exit strategies

  • Identify targets and purchasers.
  • Lead negotiations or provide negotiating assistance.
  • Supervise the transaction through to closing.
  • Manage tax position.
  • Develop reinvestment strategy.

Wealth preservation

  • Advise on any strategy: IHT, Trusts, Family Investment companies, Family Office.
  • Guide through the implications of tax efficient retirement plans, estate planning, etc.

Philanthropy

  • Manage personal charities for clients.
  • Advise on the tax efficient giving.
  • Talk to families about corporate social responsibility and educate next generation.

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Key Contacts

Pederson Chen

As the Head of Audit and Assurance and Family Business in Taiwan...

 
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Rauniei Kuo

Rauniei is specialized in IFRS reporting frameworks and initial public offering in Taiwan.

 
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