View profile

Family Wealth Destruction Has Little to Do with Business

What I’ve found interesting and counterintuitive in my research of generational families is that non-
The Business of Family
Family Wealth Destruction Has Little to Do with Business
By Mike Boyd • Issue #21 • View online
What I’ve found interesting and counterintuitive in my research of generational families is that non-contributing family members actually play an important role in the success of a family business and the preservation of family wealth.
Family wealth is destroyed by a break down in communication and relationships, not poor business decisions.
Family members outside of the family business or main financial engine of the enterprise still require a clear understanding of their role as a fiduciary, director, shareholder and family member.
Non-contributors (for lack of a better phrase) who are still shareholders, need to take responsibility for knowing how to read financial statements, allocate capital and steward wealth.
Introducing family governance structures acts as guard rails around family wealth, facilitating robust discussions and ensuring all family members are aligned around a united vision - irrespective of the specific role they play in its pursuit.
Generational wealth isn’t that hard to keep, if you do the work…

Mike Boyd
That’s why exploring the intersection of Business, Family & Wealth is so interesting (to me).

Like anything, the super successful multi-generational families often do things a bit different, a bit weird, a bit edgy.

Because convention doesn’t produce exceptional outcomes.
Recommended Book:
Your Business, Your Family, Your Legacy: Building a Multigenerational Family Business that Lasts - George A Isaac
Your Business, Your Family, Your Legacy: Building a Multigenerational Family Business that Lasts - George A Isaac
• Practical approaches to multigenerational family and business wealth management
• Training on understanding and analyzing financial statements for non-financially oriented family members.
• Tips for preparing the next generation for success, in or outside of the family business.
www.amazon.com  •  Share
This Week's Podcast Episode:
This is a gripping story of family politics, loss of control and staging a comeback.
This is a gripping story of family politics, loss of control and staging a comeback.
Richard Eu is a fourth-generation Eu. One of the family’s last remaining businesses, Eu Yan Sang, a network of Traditional Chinese Medicine dispensaries, was founded by Richard Eu’s great-grandfather Eu Kong and the family’s fifth generation are still in the business today.
This is a gripping story of family politics, loss of control, re-consolidation, an IPO, and ultimately privatisation of the family firm once again.
  • “My father told me when I was still studying that I would not expect to be able to work in any of the family businesses after graduation because of the family politics” – Richard Eu
  • “If you want to institutionalize the business, it cannot be in family hands forever” – Richard Eu
www.businessoffamily.net  •  Share
If you would like to leave a review for the podcast, this link will prompt you to open iTunes directly where you can leave a comment. Thank you!
Interesting links:
The Challenges Of The Newly Rich: Facing Judgment And Finding Their Way
The Challenges Of The Newly Rich: Facing Judgment And Finding Their Way
Those attaining great wealth are sometimes blamed or viewed negatively for their success. Some assume they must have become wealthy through bad actions or that their wealth will cause them to lose concern for others and think only of themselves.
Disparagers can always find examples to back up such prejudices. This social disapproval in turn makes it difficult for the wealthy to be open about what they are doing, inadvertently reinforcing the negative impressions.
www-forbes-com.cdn.ampproject.org  •  Share
Inside Joe Ricketts' Inbox: The Ricketts Family Constitution
Inside Joe Ricketts' Inbox: The Ricketts Family Constitution
Today we’re looking at how the influential Ricketts family—patriarch Joe Ricketts, Nebraska Governor Pete Ricketts, Republican National Committee finance chairman Todd Ricketts, Chicago Cubs chairman Tom Ricketts, and Democratic fundraiser and activist Laura Ricketts—think about their wealth, and how they deal with the pressures that come with being among the richest and most influential families in America.
splinternews.com  •  Share
Climate concerns reaching ‘tipping point’ for family offices | Financial Times
Climate concerns reaching ‘tipping point’ for family offices | Financial Times
Younger members of wealthy families are exerting pressure on their elders to review their investments
www.ft.com  •  Share
Tutoring has become a weapon in the global arms race in education. There’s no limit to what some parents will pay
www.economist.com  •  Share
Stay in touch
Mike Boyd is the co-owner and CEO of the Vroom Group, Founder of Prosura insurance, Investor at Mudbrick Capital, Host of The Business of Family Podcast and an active member of YPO.
Did you enjoy this issue?
Mike Boyd

I'm inspired by multi-generational businesses and the families who steward them.

Join me as I learn how some of the world's most interesting families share values, knowledge, resources, and wealth with the next generation.

If you don't want these updates anymore, please unsubscribe here.
If you were forwarded this newsletter and you like it, you can subscribe here.
Powered by Revue