A Legacy Intact: safeguarding your family business in the event of divorce - Book - Page 7
FOREWORD
KATIE O’CALL AGH AN
In the UK and around the world, successful family businesses sit right
at the heart of economies and communities. As drivers of growth, as
employers, as innovators and philanthropists, their impact cannot be
underestimated.
They are inclined to take a long-term view, to choose solid, sustainable
growth, over immediate gains, setting them up well to weather
temporary storms.
These attributes are rooted in the nature of their ownership, yet,
the dynamics at play in a family business are complex and fluid –
with change a constant. While family businesses are often adept at
embracing perspectives of each new generation, and of individuals
who join the fold through marriage or civil partnership – these shifts
bring challenges that must be managed, as well as risks if relationships
In the UK alone, there are 5.1 million family businesses, accounting
for some 88% of all businesses in the country. In the international
context, family businesses represent 25% of the top 100 companies in
Europe, in the Middle East they contribute 60% of GDP, and in the US,
it’s been estimated that family-owned businesses employ 63% of the
workforce.
break down.
The purpose of this guide is to examine the risks for family businesses
associated with divorce and relationship breakdown. If not carefully
handled, these risks can be cataclysmic for family businesses as well
as heart-wrenching for the individuals involved. Sensible governance
and succession planning is vital to any business – but particularly
Just like every family, every family business looks unique. On the face
of it, a fifth generation manufacturing organisation and a tech firm
founder just beginning to build a legacy for their family have little in
common. Yet in our experience, irrespective of the industries in which
they operate, family businesses often share essential characteristics:
a tangible sense of purpose, strong values, and a desire to take care
of their employees as well as the communities in which they operate.
In challenging economic cycles family businesses often prove more
resilient than their non-family counterparts. They can adapt fast, and
make quick decisions.
so for family-owned enterprises where communication between
shareholders has an added emotional dimension.
Advising and supporting family businesses has been at the heart of
what we do since we began life in 1722. With a 300 year history of our
own, the notion of laying strong foundations today, for those who will
come after is one that resonates with us.
We hope you will find what follows a useful starting point in considering
how best to protect the legacy you are building today, for the longest
term.
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