Articles Archives - David Werdiger
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Ownership & Management of Family Business

Ownership & Management of Family Business

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Family is (hopefully) for life. If the family business starts to interfere negatively with the relationships in the family, then there is imbalance. Family businesses are challenging because of the overlapping of family, business and ownership (known as the “three circle model”). Researchers from Harvard have extended this into four “rooms” by adding in the board room. Because family members wear multiple hats, are in multiple circles, or sit in multiple rooms, they need an…

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Wealth and Happiness

Wealth & Happiness

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Q: If the world’s two richest men cannot keep their wives happy, what hope do we have? A: No, that’s not a real question – it’s a meme that circulated following the news of the divorce of Bill & Melinda Gates. Many people with wealth realise that money can’t make a wife (or anyone) happy, but that doesn’t stop them trying. In business, sometimes we decide to “throwing money at a problem”. That means directing significant resources…

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An Inheritance boom is Coming

An Inheritance Boom is Coming

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Increasing life expectancies have meant that for the first time in history, four generations are alive at the same time. This has important implications for the timing of the transition of family wealth. There is an ‘inheritance boom’ coming when the Millennial generation inherit the wealth of the Baby Boomer generation, but this is expected to peak in 2035 when the average Millennial has already passed the age of 60! Some wealth originators shudder at…

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Equity and Fairness; Greed or Envy

The Principles of Equity and Fairness

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Consider This: Are members of your family more driven by greed or envy? While neither are good attributes, what can you do to mitigate their risks? Greed and Envy are two of the ‘seven deadly sins’ and are relevant to material wealth. Economists adopt the fundamental principle that people seek wealth maximisation (a form of greed), but is this really the case? Because we live in communities and families, it can be argued that the…

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Proof or Privilege in the Family Business

Proof or Privilege in the Family Business

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Consider this from two perspectives: the family and the individual. Do families demand that younger generations prove themselves in some way, perhaps before being allowed to join the family business or take some other role with respect to the family assets? The other side is the view of the younger family member. Being born into wealth can be a lodestone, especially the way ‘privilege’ is a dirty word in some circles. The world loves a…

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can. money buy happiness

Happiness; Can Money Buy It?

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And does being ‘happy’ mean something different to those who have wealth and those who don’t? These are the questions considered in a recent research study. Most anyone who has wealth would find it obvious that the answer to the first question is a resounding ‘no’, but it takes the rigour of an academic to first define happiness (life satisfaction and a set of distinct positive emotions), and then examine the correlation between them and…

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The Fear of Wealth Transfer

The Fear of Wealth Transfer

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Q: How do we protect the next generation from blowing our money? A: Stop right there. Whether you have created or inherited the wealth, the language of the question reeks of a power, control and mistrust dynamic. Many families either hang on to their wealth or setup structures to prevent their children from “blowing it” (which is often controlling from the grave). Yes, it’s awkward having discussions about estate planning and family wealth, and who wants to…

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Philanthropy - Covid and beyond

Philanthropy: COVID & beyond

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Many families struggle with the ‘why’ of their wealth. Defining a philanthropic strategy is a great way for a family to articulate a purpose for their wealth. However, only 20% of families have a formal process for doing so. At the start of COVID, there was concern that financial pressure on families would lead to a reduction in philanthropy. But in a recent survey, 43% of respondents said that the pandemic had not altered the…

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environmental social governance nextgen

Environmental, Social and Governance Investing for NextGen

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Successful entrepreneurs are often control freaks. But they can’t control whether their children can take over the business or the assets and keep them growing. Entrepreneurs may be visionaries, but sometimes it takes an external advisor to identify choices that they might otherwise overlook. Transferring full control of an operating asset to children isn’t the only option. Neither is continuing the way things have always been done just for the sake of it. The drive…

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Business Family Succession Strategy

Business Family Succession Strategy

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