Family Enterprise Diligence
The FBS Family Enterprise Diligence clarifies how the existing governance of a family enterprise works. This covers the formal and identifiable governance structures and processes and the informal mechanisms, conventions and roles that every family enterprise develops to achieve an overall balance of power among different, and sometimes competing, interests; for example unwritten practices in relation to ownership, employment, communication and board representation.
The FED ensures that the strengths and weaknesses of all the formal and informal governance structures in a family enterprise are clearly understood and evaluated. This is illuminating for an enterprising family at any time and is critically important before any attempt is made to implement changes. The FED also provides an objective assessment to satisfy the concerns that potential lenders, investors, advisers and outside directors may have about how a family enterprise is governed and which might be overlooked or undervalued by more conventional forms of diligence.
