Succession Planning: A Much Needed Discipline in Asia & Africa
Asian and African families have built substantial wealth in the last few years. They are now ready for a smooth transition of power to the next generation of key leaders. The movement to the new roles, however, will need some assistance to ensure that the initiation, selection, and education of the next-generation leaders is appropriate and well-defined.
That’s where a family office can help.
Although these affluent families often encourage the new generation to become a part of the family business, a few of the next-generation leaders tend to carve their own paths. Despite such divergence from the family business, there’s no reason to deny that such individuals are still an important part of the family, entitling them to at least some of the family’s accumulated wealth.
According to a June forecast by the Boston Consulting Group, Asian wealth is expected to increase by 5.1-7.4% yearly, between 2019-2024, depending on how the pandemic pans out. That’s way ahead of the predicted global outlook which is expected to increase by 1.4-4.5%.
Despite an upward trend, only 15-20% of the region’s wealth is under format management, according to a study conducted by Mckinsey. The idea of wealth management is still very new to Asia and Africa.
How Xanara makes Succession Planning Smooth?
At Xanara, we understand how important succession planning is to your family and your business. We act as your family office to set up proper processes for monitoring portfolios and diversifying wealth into different asset classes, streamlining the continuity of the business.
We stand by our clients to ensure that the succession planning is highly effective and beneficial to both the family and the business.
Private banks don’t offer that luxury. Many times, a family establishes a relationship with a bank through a relationship manager, and when he/she leaves the bank, the family is left with a choice to make – whether to move banks with the relationship manager or keep their relationship with the existing bank with a new relationship manager.
With Xanara, you receive undivided attention to detail with a dedicated team of advisors that work together with your best interests at heart. We facilitate a disciplined approach to manage closely held businesses, ensuring the succession to the next generation leaders is smooth.
We put emphasis on educating our clients in making a more structured foundation for their wealth – a constitution that’s set out to write down the family’s aims, responsibilities of each member, and plans for education along with other endeavors or achievements of the future generations.
In addition to that, we help you identify nominee shareholders and trustees for your business to ensure the key positions and roles are never vacant, allowing you to make the transition of power to the most appropriate individuals in time. We believe that it is never too early for the next generation to become familiar and engage with the family business.
As your family office, Xanara also provides you with Estate Planning, Trust Formation, and Philanthropy as well, helping you make the most of your family’s accumulated wealth.
As affluent families in Asia and Africa learn more about wealth management, Xanara has extended its arms in the region to offer its services, supporting the client on every level, unlike a private bank.
About Xanara
Xanara is a private banking and wealth advisory focused on developing and implementing transparent and client-centric, financial solutions that are backed by expertise. We understand the weight of our solutions and act with the utmost care, resilience, and most importantly, integrity.