Family Business
Issue No. 40 - April/ /
Selecting your family business adviser
by Chris Johnston
At a recent Family Business Australia seminar, eminent family business operator Chris Johnston outlined the criteria family businesses should look for in professional advisers.
Chris is deeply experienced, his family operating several businesses including a closely-held, second and third generation family investment company, Kerewong Pty Ltd and the unlisted public company, J & AG Johnston Ltd of which Chris is Chairman of Directors.
“The family firstly should determine whether the family business context is relevant to the advice sought - that is, whether the adviser needs to be informed on family business issues or not,” Chris says.
“Assuming this sensitivity is required, the adviser should be able to meet the following criteria.”
1. The adviser should recognise that family businesses are different and be able to differentiate between the needs of a family business and non-family businesses.
He or she must also be able to understand the characteristics of key stakeholders and how the family and the business relate to each other: “If your adviser doesn’t explore, understand and deal effectively with human elements (of issues), even the most brilliant, money-saving technical plan will fail. Or the plan will never be signed, completed or fully implemented.”
(Irving L. Blackman, accountant, Chicago)
2. The adviser should be highly regarded by relevant family business peers
‘Relevant’ means businesses having similar (family) business characteristics and issues.
The advisers should have testimonials available - clients willing to give an honest assessment of the adviser’s capability.
3. Relationship with the client is vital
There has to be a positive ‘chemistry’ between adviser and client (and vice versa); you have to relate well to each other.
That relationship involves mutual respect.
The adviser should be able to engage adviser-phile and advise...
