Banking for Family Business (eBook)

Preface 5
Foreword 7
Table of Contents 18
1 Family Business as Viewed by Financial Intermediaries 19
1.1 The Importance of Family Business and Definition of the Entrepreneurial Family 19
1.2 Taxonomy of Entrepreneurial Families: Structural Variables 20
1.3 Taxonomy of Entrepreneurial Families: Social Variables 23
1.4 Current Trends in Italian Entrepreneurial Families 25
1.5 The Requirements of the Entrepreneurial Family and the Financial Intermediary 27
1.6 Families and Their Relations with Other Advisors 29
1.7 The Financial Intermediary as the “Third Actor” 31
1.8 Financial Intermediaries as Viewed by Entrepreneurial Families and Development of Family Offices 33
2 Private Banking and Family Business: Positioning and Development 38
2.1 Introduction 38
2.2 The Development of Banking Between Specialization and Integration 39
2.3 The Target Market for Private Banking and Wealth Management 41
2.4 The Financial Offer for Family Wealth Management 48
2.5 Family Office as the Organizational Solution for Family Business 52
2.6 Private Banking, Wealth Management and Family Business: Critical Aspects 58
2.7 Conclusions 63
3 The Map of Family Business Financial Needs 65
3.1 Introduction 65
3.2 A Proactive Segmentation Model for Family Business 66
3.3 Family Business Financial Behaviors: Toward a Combined Family- Firm Evaluation 81
3.4 From Mapping Requirements to Market Positioning as to Family Business 92
4 Synergies Between Corporate and Private Banking 105
4.1 Introduction 105
4.2 The Relationship Between the Owner Family and the Owned Firm: General Prescriptions 106
4.3 The Relationship Between the Owner Family and the Owned Firm: the Nature of Assets and Financial Connections 111
4.4 Synergy Producing Operations Between Corporate and Private Banking 125
5 Corporate Finance and Financial Advisory for Family Business 130
5.1 Introduction 130
5.2 Corporate Finance Operations and Wealth Management Services for the Entrepreneur and His/Her Family 131
5.3 Corporate Finance Operations: Links With Entrepreneurial Assets and Consequences in Terms of Required Services 136
5.4 Corporate Finance Services in the Wealth Management of Entrepreneurs: Effects on the Offer and Prevailing Business Models 141
6 Family Office: Which Role in Europe? 151
6.1 Introduction 151
6.2. The Family Office Distinctive Features 153
6.3 The Family Office Legal and Organization Structure 159
6.4 The Family Office Cost Structure 163
6.5 The Family Office Opportunities in the Italian Market and the Role of Banks 167
6.6 Conclusions 176
7 The State of the Art of the Multi-Family Office 177
7.1 Objectives and Methodology 177
7.2 Cautious Interpretation of Results 181
7.3 The MFO Governance 181
7.4 The MFO Target Market 188
7.5 The MFO Supply of Services 191
7.6 Operating Mechanisms: Customer Relationship and Management Fees 196
7.7 Conclusions and Possible Development Trends for the MFO in Europe 199
Annex 1 –Questionnaire 203
8 The Art of Family Office: The Case of a Multinational Bank Branch 205
8.1 The Strategic Goals of a Very High Net Worth Family 205
8.2 Preliminary Analysis of Family Needs 207
8.3 Essential Features 209
8.4 The Legislative Framework 211
8.5 A Case Study 213
9 The Art of Family Office: The Case of a Specialized Intermediary 215
9.1 Introduction 215
9.2 The Family Banker 215
9.3 The Family Office 216
9.4 Services 218
9.5 The Case of Corporate Family Office SIM S. p.A. (CFO SIM) 221
References 226
List of Contributors 232