Helping a third-generation Canadian business-owning family implement formal governance structures

The situation

The client’s family runs a construction business valued at US$5 billion, operating in the U.S. and Canada. We were first approached by a second-generation family member who is currently president of the operating company. He has substantially grown the business over the past five years and is concerned about an increasing number of conflicts occurring between family members and operating executives. For the survival of the business and the family itself, he would like to restore harmony.

The client’s goals

• Manage and resolve conflict between family members.
• Agree on the future strategy of the business, including succession planning and identifying future leaders.
• Diversify assets and invest part of their wealth to meet the current and future needs of all family members.

Our approach

• Our Family Governance & Succession team devised a number of family workshops to prompt difficult conversations, identify and make plans to mitigate risks, and create a set of protocols for decision-making to prepare the family for the future.
• Our Legal and Fiduciary teams reviewed the family’s existing structures and made suggestions around tax and estate planning.
• The Investments team provided family members with advice on asset allocation, manager selection and risk management—helping them to establish a long-term, diversified investment strategy.

Outcomes to date

• Worked with the family to establish company bylaws that address key ownership issues and actively involve the next generation in decision-making.
• Established three family trusts for which our Family Office teams act as fiduciaries and trustees.
• Our Investment Management team developed an investment strategy, implemented a currency risk management strategy framework, and selected custodians to negotiate appropriate arrangements.

Disclosure: Case studies are provided for illustrative purposes only and are based on real client or former client engagement. Some scenarios may reflect client experiences or work originally performed by a firm that has since been acquired. All client names, identifying details and contextual elements have been anonymized to protect client confidentiality. The outcomes described reflect the experience of a particular client. Results are not guaranteed and may vary based on each client’s individual circumstances, market conditions, regulatory requirements and specific financial objectives. Past performance is not indicative of future results.

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