Family Business Services

Nurturing the family business, sustaining the family legacy

Nurturing the family business, sustaining the family legacy2

You’re building more than a business, you’re building a family legacy

Family enterprises are focused on many of the same issues as other types of businesses. But family-owned businesses also face the unique challenges that come with family ownership:

• Howcanyoupreservethebusinessforthenextgeneration?

• Howdoyouengagethatnextgenerationinthebusiness?

• Howdoyoupreserveyourbusiness’specialcharacteryetadapttoanalways-evolvingglobaleconomy?

The business landscape is now more uncertain than ever and these shifts are happening in an atmosphere of unrelenting intensifying pressures, such as:• Recruiting and retaining key skills

• The need to innovate

• Resource scarcity

• Price competition

• Regulation challenges

But, while family businesses face the same challenges as other types of businesses, these pressures play out very differently in a family-owned enterprise. Unlike other companies, one of the underlying forces driving family businesses decisions is the goal of preserving and developing the business for the future generations.

The challenges of family dynamicsHowever, while working with your relatives can generate higher levels of trust, it can also lead to tensions and conflict.Nosurprisethenthatsuccessionisathornyissuefor family businesses and many fail to approach the topic at all. This ends up signaling uncertainty to the outside world which can have adverse effects on the company’s health and longevity.

Easier said than doneTo make matters worse, family dynamics and non-business considerations can easily derail even the most successful enterprise — especially when an external economic crisis occurs or the family is grappling with succession issues.

68% of family businesses believe that market conditions are the main issue for them over the next 12 months.—PwC’s2014-1015US FamilyBusinessSurvey

68%

97% of US family businessesareconfidentaboutrevenue growth overthenextfiveyears. —PwC’s2014-1015US FamilyBusinessSurvey

97%

3Family Business Services

Who we areFamily Business Services is part of PwC’s Private Company Services (PCS) practice. Our team of dedicated family business specialists has a deep under-standing of the forces and considerations that drive your business decisions. This understanding comes from years of experience working alongside owners and family members alike hearing what matters to them, their concerns and theirhopesforthefuture.Ourunderstandingisalsoinfluencedbyourteammembers’ personal experiences with family businesses.

And if your business has a global footprint, we can deploy a team of dedicated family business professionals from around the world to help you in your operations — regardless of where you’re doing business. Behind our family businessteamaretheresourcesofPwC’sglobalnetworkoffirms,whichbringstogether 195,000 people in 157 countries around the world to serve you.

Who we serveWe serve families, major stakeholders and decision makers in family-owned enterprises across a wide spectrum of size and business types. Our client familiesspanfirstgenerationstosixgenerationandbeyond.Thebusinessesowned by our family clients span numerous industries with operations both domestic and international.

Only 30% of family businesses survive into the second generation. We work with family businesses to help them beat those odds.—SuccessionPlanning, Family Business Institute

Fast facts

Within the US, PwC’s Private Company Services practice, with locations in every major US market, has more than 160 partners and 2,000 staff working with family businesses, closely-held businesses, their owners and shareholders.

Over the past year, PwC has advised and worked with over 100,000 entrepreneurs and private businesses around the world.

With 758 office locations in 157 countries, PwC’sglobalnetworkofmemberfirmshasmorethan 10,000 partners and 185,000 staff who provide a comprehensive range of advisory, audit and assurance, family business, human resource, legal and tax services to clients.

Nurturingthefamilybusiness,sustainingthefamilylegacy4

We provide a broad range of assurance, tax, and advisory services that are designed to help you and your family business achieve your goals — regardless of which industry you’re in, which markets you serve, your particular business structure, or your long-term goals. We take an all-inclusive approach.

Ourservicesaredeliveredthroughfivekeyareasthatareofimportancetoyou:strategyandgrowthservices, governance services, business transition and succession planning services, private wealth services, and values and philanthropy services.

How we can help Supportingyourbusinessthroughallphasesofyourcompany’slifecycle

PwC’s Family Business Services

Lifecycle of a family business

Growth and expansion

Matu

rity

Transition

• Advisingontransitionandexitstrategies

• Consultingonsuccessionplanning

• Advisingonbusinesstransformation

• Identifyingtaxefficienttransfersolutions

• Supportingthenextgenerationinleadershiprole

• Supportingbusinesssaleand/orleadershiptransfer

5Family Business Services

Lifecycle of a family business

Growth and expansion

Matu

rity

Transition

• Advisingoncapital,investmentandfinancingoptions

• Offeringassuranceservices

• Suggestingstrategiesforgrowth,liquidity,acquisitions,diversification

• Identifyingwaystooptimizetalent

• Offeringbuy-side,sell-sidediligence

• Consultingonproductandmarketexpansion

• AnalyzingUSandglobaltaxstructures

• Identifyingcostreductions,profitimprovements

• Analyzingtechnologyneedsandimprovements

• Recommendingphilanthropicopportunities

• Suggestingimprovementstoprocessesandprocedures

• Providinghighnetworthtaxconsultation

• Advisingonownershipstructure,shares,agreements

• Recommendinggovernanceprocedures

• Analyzingboardcomposition,structure

• Recommendingfamilycouncils,andotherformalstructures

• Advisingonfamilycommunicationprocesses

• Supportingdevelopment/managementoffamilyoffices

• Recommendingtransitionplans,successionstrategies

• Supportingdevelopmentofnextgenerationleadership

Nurturing the family business, sustaining the family legacy6

Family Business Thought Leadership Program

PwC’s 2014-2015 US Family Business surveySince 2008, the PwC’s 2014-1015 US Family Business Survey has been providing insight into how US family businesses are meeting the demands of today’s market place.

Family Business Corporate Governance SeriesThis series of white papers covers all aspects of family business governance. Titles include Buildingorrenewingyourboard, What’stheboard’sroleinfamilybusiness, and CEOsuccessionplanning.

Next Gen surveyFor this report, PwC talked to next generation family business leaders to discuss succession, how family businesses are planning for it and the challenge in implementing it.

Managing your wealthThis popular annual guide covers a broad range of family wealth topics, including information on succession planning, estate planning, family meetings and updates on tax law changes.

Family OfficesWe offer a range of materials onfamilyoffices.Topicsincludestructuringfamilyoffice,andtheadvantagesofafamilyoffice.

Realizing shareholder value: Private company exit strategiesThis series was developed to guide privately-held business owners in the development and execution of an effective exit strategy whether accessing capital, selling the busi-ness or transferring ownership to the next generation.

Thoughtleadershipprovidesdataandstrategiesthatcanmakeasignificantandpositivedifferenceintheway you do business. That’s why we produce a broad range of reports, survey, white papers, articles and commentaries on virtually every facet of family businesses, all designed to make your world easier to manage. A sampling of these publications follow. For a full listing of available information or to download a copy of the materials below, go to: www.pwc.com/us/familybusiness

www.pwc.com/pcs

Professionalize to optimize: US family firms are no longer winging itUS Family business survey

To thrive in the 21st century, family firms will have to adapt faster, innovate earlier, and become more professional in how they run their businesses.

www.pwc.com

Family Business Corporate Governance SeriesCEO succession planning

April 2015

Bridging the gap:Handing over the family business to the next generation

www.pwc.com/nextgen

Next Generation Survey

15 April 2014

Personal Financial Services

Guide to tax and wealth management

2015

Managing your wealth

Family Office DiscussionDesigning a Comprehensive Family Office Structure

October 15, 2014

www.pwc.com

FPO

12Position your business now is essential

Employees and the decision to sell

Defining objectives: the mission-critical stepPrivate

Company Services

Exit Strategies

Making the decision to sellPart one in a series

Contacts

Alfred Peguero Partner(415)4986111alfred.peguero@us.pwc.com

Jay MattiePartner(617)5304323james.mattie@us.pwc.com

Jonathan FlackPartner(615)5032866jonathan.flack@us.pwc.com

Our dedicated professionals have a successful history of working with families to develop complete solutions to your growth and expansion, succession planning, governance, wealth management and philanthropy issues.

Let us help you achieve your goals.

©2015PricewaterhouseCoopersLLP,aDelawarelimitedliabilitypartnership.Allrightsreserved.PwCreferstotheUnitedStatesmemberfirm,andmaysometimesrefertothePwCnetwork.Eachmemberfirmisaseparatelegalentity.Pleaseseewww.pwc.com/structureforfurtherdetails.Thiscontentisforgeneralinformationpurposesonly,andshouldnotbeusedasasubstituteforconsultationwithprofessionaladvisors.PwCUnitedStateshelpsorganisationsandindividualscreatethevaluethey’relookingfor.We’reamemberofthePwCnetworkoffirmsin157countrieswithmorethan195,000peoplewhoarecommittedtodeliveringqualityinassurance,taxandadvisoryservices.Findoutmoreandtelluswhatmatterstoyoubyvisitingusatwww.pwc.com/US

www.pwc.com/us/familybusiness

About PwC’s Family Business ServicesPwC’s Family Business Services is part of the Private Company Services (PCS) practice which has more than 160 partners and 2,000 staff dedicated to working with family businesses, closely-held businesses, their owners and shareholders. Our family business professionals provide a broad range of assurance, tax, and advisory services to help your family business achieve your goals — regardless of which industry you’re in, which markets you serve, or your particular business structure. These services are deliveredthroughfivekeyareas:strategyandgrowthservices, governance services, business transition and succession planning services, private wealth services, values and philanthropy services. A hallmark of PwC’s Private Company Services practice is a robust thought leadership program that provides clients with timely, thought-provoking information to help manage and grow their businesses and wealth.