In Italy 96% of firms are family businesses, 40% of those established more than 30 years ago are still managed by their founders and have a large portion of the family wealth invested in them. As a business cycle usually lasts 29 years, this means that in the next years these firms will face generational transition. Considering that only 30% of Italian family businesses survive the second generation and only 15% survive the third, it’s clear that businesses need to raise awareness. Both internal and external competences are necessary to avoid the risks connected to a generational transition: conflicts that can be bought about by change management, and organizational turnarounds, low human capital investment, the redistribution and redefinition of responsibilities among family members.

Goal

This module’s objective is to identify and define the key criteria and governance models required to ensure a successful generational transition, able to pass on the family fortune’s tangible and intangible value in the long run.


Lesson 3.1.

Intangible assets as a key element to ensure continuity (human capital, reputation, social responsibility, family values, stakeholder balance, impact investing)

  • The Family Values Charter
  • Intangible assets and family values: at the root of Business Sustainability
  • Sustainable Finance: ESG and SRI
  • ESG – contribution to risk management
  • The analysis path and the assignment of the ESG rating
  • The markets covered by the ESG analysis
  • How to apply Sustainability to a Portfolio: ESG Sustainability and Performance
  • How asset managers use ESG information
  • Strategic philanthropy. From family values to a durable project over time (strategy, selection, implementation)

Lesson 3.2.

Legal vehicles to ensure continuity along generations: family constitution, family governance, family covenants, succession planning

  • Passing on family assets
  • The organized generational transition: governance models to support
    I Patti di Famiglia
  • Government operating tools to prevent conflicts and ensure the transparency of sharing processes (family councils, family regulations) suitable for different cases
  • Comparison between simple companies, s.a.s, sapa and trust
  • The purpose of life insurance policy planning
  • The will connected to the trust pour over
  • The transmission of family wealth: the shareholders’ agreements
  • The statutory clauses
  • Multiple voting shares as asset management tools: practical cases.
  • The English Family Constitution

Lesson 3.3.

Global taxation vehicles to ensure continuity

  • Voluntary disclosure and its consequences
  • Tax and Fiscal implications while setting up Family Offices
  • The role of the Holding
  • FATCA and CRS

Lesson 3.4.

The Family Office as an instrument to protect, foster and sustain family tangible and intangible wealth

  • From delegation to strategy implementation
  • Main Trends in Family Office Matters
  • Create a Family Office: organizational models
  • The figure of the Family Officer
  • Costs and revenues
  • Testimonials