Family Business and Succession Planning Challenges

Rather than a one-off event of handing over the marathon stick, succession is a process, that can leave family businesses in a bit of a pinch, as an ownership structure that worked well for one generation can quickly turn dysfunctional in the next.

In the absence of a design and implementation of a process, succession will almost certainly be forced by a crisis. In contrast, those families who do successfully pass their business to the next generation stand a good chance of seeing their business go from strength to strength.

All too often succession planning focuses just on technical issues – wealth transfer, finance, tax and legal aspects – whereas the bigger challenges of the human dimensions are often completely neglected. This due to everyone wants to avoid the ‘coliseum of uncomfortable debate’.

This session will be discussing the following topics :

  1. Who should lead the process? Can I wait?
  2. How to apply the rules among family members?
  3. How to groom family managers as successor(s)?
  4. Methods to review family manager performance.
  5. Compensation for family members.

 

Date : November 9th, 2018

Location : William's, Jl. Tulodong Atas No.28, SCBD, South Jakarta

 

PAST EVENT


 

Overcoming Sibling Rivalry in Family Businesses

Family owned businesses can have many advantages. Statistically, they outperform their non-family counterparts. This is due to the commitment and dedication of the family in seeing its business grow, prosper, knowledge continuity. The chairman usually makes it a priority to pass on accumulated knowledge, experience, and skills to the next generation.

However, many of these family businesses fail to be sustainable due to family issues or unresolved conflicts. As a result, the business which was painstakingly built from decades ago is wasted due to unresolved conflicts or rivalry among siblings.

It is thus ideal if one can avert the conflict by carefully planning out the management process when transferring to the second generation.

This session will be discussing the following topics :

  1. The cause of sibling rivalry: Emotional or Strategic?
  2. Strategies to avert sibling rivalry
  3. How to choose the right successor?
  4. What if the siblings are not capable?

 

Date : September 7th, 2018

Location : William's, Jl. Tulodong Atas No.28, SCBD, South Jakarta

 


 

HOW TO GROW YOUR BUSINESS

It is the nature for a business to grow – whether it is for profit, economics of scale, or gain market share. Several ways a firm can grow their business i.e. through organic growth via expansion, or inorganically through joint ventures, mergers and acquisitions.

In this era of fast pace technology, are the traditional recipes for growing your business still valid? By cutting price or being more costs efficient? How do businesses embrace the technological developments without losing its original identity? What are the keys to growing the business without disrupting it?

This session will be discussing the following topics :

  1. Ways to grow your business
  2. Reasons to grow your business
  3. Prerequisites before embarking on the growth path
  4. Risk of not growing your business
  5. How much to grow your business?
  6. Utilizing technology and the internet of things

 

Date : March 9th, 2018

Location : SAMSARA, Jl. Gunawarman No. 16, Kebayoran Baru, Jakarta Selatan

 


 

HOW TO DEAL WITH PRIVATE EQUITIES

As the largest country in the AEC (Asian Economic Community), Indonesia is one of the most attractive destinations for investments. Institutional investors i.e. Private Equity, Hedge Funds, Mezzanine Funds, Development Banks, and Family Offices are investing to Indonesia’s growing sectors among others; infrastructure, retail, energy, healthcare, pharmacy, FMCG and manufacturing sectors.

Are you ready when offered a terms sheet that might be complicated yet lucrative to your business? Some questions might remain unanswered, among others :

  1. Should I go public as suggested?
  2. Is my company ready?
  3. Are they real investors?
  4. Is there freedom after they invest?
  5. What if they cancelled the deal and learned so much about our company?
  6. How to tell if it is a marginal deal?
  7. How to avoid small prints & possible drawbacks if signed into the deals?
  8. Shall I sell minority or majority?
  9. What value do they add beside money?
  10. What financial instrument to use?
  11. How much equity dilution is worth it?

 

Date : January 26th, 2018

Location : SAMSARA, Jl. Gunawarman No. 16, Kebayoran Baru, Jakarta Selatan

 


 

Business Plan, Budgeting, KPI, Performance Evaluation; WHY IS IT CRITICAL ?

A good budgeting plan must include the marketing plan, addressing the company’s strategy, operational strategy, and capital allocations.

Many times, firms fail to link the budget to the Key Performance Indicators (KPI) and performance evaluation of the Directors. The disconnect between these aspects can result in poor strategy implementation and affect the sustainability of the business.

This session will discuss the following topics :

  1. Business plan vs Budget
  2. Elements in a budgeting process
  3. Who leads the budgeting process
  4. Alignment between budget, KPI, and performance evaluation
  5. Benefits of a proper budgeting process

 

Date : November 14th, 2017

Location : SAMSARA, Jl. Gunawarman No. 16, Kebayoran Baru, Jakarta Selatan

 


 

Key Success Factors for a Company Acquisition

Growth can either be vertical or horizontal in the value chains. One of the ways that enables companies to grow rapidly is where synergies are created via acquisitions or mergers. Mergers and acquisitions (M&A) is a general term that refers to the consolidation of companies or assets. This involves critical capital planning, management control according to company's resources, capabilities and business strategies.

There are various types of M&A, hence all parties need to consider the complex issues involved. Our Mergers & Acquisitions Briefings will provide decision makers on the essentials of a successful M&A transaction.

Date : October 19th, 2017

Location : SAMSARA, Jl. Gunawarman No. 16, Kebayoran Baru, Jakarta Selatan

 


 

Managing Conflict in Family Business 

The Breakfast Briefing event is held every month by The Corporate Finance Institute (CFI) in association with Fidelitas.

Our Breakfast Briefing event seeks to increase public understanding of the many challenges that modern corporations face and must address. One such challenge that many companies in Indonesia face today is the executive transition process between generations.

Family business constitutes the world’s oldest and most dominant form of business organization that ranges from small and medium sized companies to large conglomerates with operations in multiple industries and countries. Most family businesses in Asia are currently being run by the first through third generation family members.

The inherent challenges for sustainability of family businesses can be overcome by adopting good corporate governance and corporate structure. The corporate governance structure must clearly define the roles, responsibilities, rights, and interaction between the companies’ main governing bodies. In a family, corporate governance responsibility is shared among owners, board of directors, and senior management.

Setting-up a corporate governance structure early will help anticipate and resolve conflicts among family members about business issues. This is one of the main things that you learn by joining our Conflict Resolutions in Family Business Briefings.

Date : September 13th, 2017

Location : SAMSARA, Jl. Gunawarman No. 16, Kebayoran Baru, Jakarta Selatan

 


 

Other Topic

  1. What is Fair or Equal Treatment in Family Business
  2. Differences between Equity and Mezzanine

[Details to be published soon]

*date and location is subject to changes