Business / Economy

Private firms have to bring in external ideas

By Cecily Liu (China Daily) Updated: 2014-10-13 10:46

He says such superstitions are not unique. In Russia, for example, it is also considered potentially bad luck to talk about succession, and inheritance tax, but growing numbers are realizing it is potentially too dangerous not to plan such matters ahead.

He advices that a succession plan should ideally be drawn when a CEO is 60 or above, but still everyone has to be thinking at least 10-20 years ahead, "and this may mean bringing in outside help" preferably well before succession.

A lack of planning, he says, can create "too big a risk and inevitably could destroy value in a company".

His company offers what he calls an "all-encompassing strategy" that can require a lot of work and preparation.

For a lot of his emerging market clients, Oracle's services involve looking after all aspects of their welfare to help them preserve wealth, and pass it down to the next generation.

For example, his team could help clients who have made money in one market to diversify into another.

Or they arrange for their children to receive Western education, so they are ready to help take the family business to the next level should they wish to go global.

"It is important for the children to not just sit in the family business, but go to other companies in the industry or go to a business school, so they can bring fresh ideas into the family business," Graham says.

"They need to understand that they are not running an asset that is theirs-they are preserving wealth that can be passed down to future generations."

Private firms have to bring in external ideas

Private firms have to bring in external ideas

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