For more information contact: emailus@marcusevans.com Håkan Hillerström who is the Owner, Håkan Hillerström Family Business & Family Office Advisory shared his presentation entitled "Locking in the Legacy: Long-Term Succession Issues in Single and Multi-Family Offices" Join the November 2014 Summit along with leading European family offices and global asset managers in an intimate environment for a focused discussion of key new drivers shaping wealth management strategies today. For more information contact: emailus@marcusevans.com

1. LOCKING IN THE LEGACY:
LONG-TERM SUCCESSION ISSUES
IN SINGLE AND MULTI FAMILY OFFICES
Presented by Håkan Hillerström
Elite Summit, Montreux – 31/5 2012

2. General Succession Issues
Family Businesses and Single Family Offices
Older generation staying in leading management roles too long
Older generation hanging on to the ownership power too long
Education, training, mentoring and integration of the next
generation
Marriages, divorces (and prenuptial agreements)
Family conflicts
Solutions for generations to come 2

3. General Succession Issues
Family Businesses and Single Family Offices
Communication
No decision
Fairness (equality is not the same as equal)
Active and passive family members
Lack of rules
Too many family members
Solutions for generations to come 3

4. General Succession Issues
Family Businesses and Single Family Offices
Will access to money/the business lessen my children’s
motivation and desire to work (hard)?
Will my children consume the wealth in wasteful ways?
Entitlement versus merit
Rights versus obligations
Investment versus spending
Solutions for generations to come 4

5. Succession Issues in Large Corporations
Also difficult issue
Recent cases
o Hewlett Packard
o Berkshire Hathaway – Warren Buffett
o News Corporation – Rupert Murdoch
o Apple – Steve Jobs → Tim Cook
Solutions for generations to come 5

6. No Planning
When it comes to SFO’s and MFO’s in
general, they seem to start with no or little
regard as to how the succession will be
handled.
Solutions for generations to come 6

7. Succession in Single Family Offices
(SFO’s)
How many SFO’s do you know that have successfully moved from
one generation to the next?
How many SFO’s do you know that have a good succession plan
in place both with regard to ownership and management?
Should we set a time limit on the SFO’s existence – a self
destruction button after say 25 years?
Solutions for generations to come 7

8. Succession – Don’t wait until it’s too late!
A) Stanley Ho – The fight for his fortune B) Stanley Ho interviewed by his lawyer
Another case : Liliane Bettencourt, L’Oréal
Solutions for generations to come 8

9. SFO’s – Final Thought
Empower the next generation
Message to the older generation:
“You cannot rule from the grave”
Solutions for generations to come 9

10. Succession in Multi Family Offices
(MFO’s)
Enthusiastic start
But very few have any succession plans in place
Solutions for generations to come 10

11. Different Succession Models for MFO’s
A) Naked in naked out (like the big audit firms)
B) Part-ownership with internal market but difficult when growing fast –
becomes too expensive
C) Stable, large owner in background (eg. Bessemer, Quilvest, Sand
Aire)
Solutions for generations to come 11

12. Different Succession Models for MFO’s
D) Sell to larger organisation (defeating the purpose)
E) Outside corporate shareholder (eg. Flemings, Standard Chartered)
F) Old Swiss private banks model – personal and entire liability
Solutions for generations to come 12

13. MFO’s – Final Thought
Must discuss internally, make decision which model works best,
openly communicate to clients
Solutions for generations to come 13

14. Conclusion
Plan the succession right from the start
Take time – succession plans are not done overnight
Any succession plan must be thoughtful and well communicated
Create an Emergency Plan
Ensure successors are properly trained and prepared
Solutions for generations to come 14

15. Conclusion
Get the next generation involved – commitment follows
Empower the next generation
Don’t sit on idle money make sure future generations get the
chance and are encouraged to continue to invest
Solutions for generations to come 15

16. Conclusion
“Succession is like a relay race…..
Whoever succeeds must be up to speed with the business and able to propel this still
further. At the same time, the predecessor must be comfortable that he can pass on
the baton and that it will be in safe hands”.
Solutions for generations to come 16

17. Your contact
Håkan Hillerström
Tel: +41-22-827 85 00
Mobile : +41-79-200 41 30
hakan@hillerstrom.ch
www.hillerstrom.com
100, route de Frontenex
CH-1208 Geneva
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