KPMG to focus on governance in family businesses

Tuesday, 11 March 2014 01:23 - - {{hitsCtrl.values.hits}}

Family businesses are unique. At the center of this difference is the family dynamic, which can play a significant role in decision making and offers both opportunities and challenges. The growth and sustainability of a family business lies in the fine balance between the needs of the business and the expectations of family members.

While family business owners benefit from the personal challenge of building their businesses, family independence and respect within the community, they are also confronted with numerous challenges which generally aggravate over time and with business expansion. Among these challenges is the need for succession planning and managing the transition of the business to the next generation of family control, effective governance, managing family relationships and expectations associated with the business, and coping with expansion. Although the business world changes, one factor remains constant: middle market businesses led by entrepreneurial business people are the backbone to a successful economy. Regardless of the country of origin, statistics prove this market segment represents a significant portion of the business community. "KPMG will be hosting a workshop on ‘Governance in Family Businesses’ on Friday, 21 March, at the Galadari Hotel Colombo. The event will include a case study based presentation, by Christophe Bernard, KPMG’s Global Head of Family Business and the Head of Middle Markets – Enterprise, across Europe, the Middle East and Africa." A considerable amount of Sri Lankan businesses are owned by families operating across diverse industries and with varied scales of operation. These businesses transform the markets within the country, fuelling the growth of the economy. KPMG’s aim is to help entrepreneurs grow their businesses and increase shareholder value. This means that as their trusted business adviser KPMG would provide more than tax and accounting services. It means understanding the needs of their business and introducing the right talent at the right time. Better governance of a family business can improve business performance and help satisfy the expectations of all family members. The implementation of family business rules appropriately, through effective governance, could avoid adverse impacts on the success of the business. When you get right down to it, governance is really about good communication and decision-making. KPMG will be hosting a workshop on ‘Governance in Family Businesses’ on Friday, 21 March, at the Galadari Hotel Colombo. The event will include a case study based presentation, by Christophe Bernard, KPMG’s Global Head of Family Business and the Head of Middle Markets – Enterprise, across Europe, the Middle East and Africa. Thamali Rodrigo, the partner who leads the Family Business and Enterprise Division at KPMG Sri Lanka, stated: “This event is a unique event which has been organised with the aim of bringing family business leaders on a common platform to discuss challenges such as governance, succession planning and the relevance of understanding the dynamics of family businesses.”