An increase in wealth results in an increase in complexity for family businesses

…Family Barometer 2023 | Julius Baer and PwC

This is the first in a four-part series providing key insights of importance to Family Businesses from the Julius Baer Family Barometer 2023, done in collaboration with PwC.

As we step into the new year, we reflect on the past 365 days that have deeply impacted our world. Much has happened worldwide that has shaken the foundations of certainties we once held.

The complexities inherent in our ever-evolving global, business, and familial spheres necessitate a recalibration of approaches in the search for stability.

Family businesses are faced with a choice to adapt and diversify their approach as the complexity within the world, their business and family is increasing. This is confirmed in the Family Barometer 2023 report, issued by Julius Baer and PwC, which uncovers the globalised nature of family affairs, the changing landscape of taxes and regulations, the role of family governance, the impact of political stability, and the dynamics of philanthropy.

The report further found that families will have to rethink and reinvent their old thought patterns and might have to start considering consulting with experts to help them navigate the myriad challenges and opportunities.

The report focused mainly on Europe, Asia, the Middle East and the Americas but the key findings resonate globally. The report was mainly built from the responses of the “Rising Generation,” aged between 18-40. This revealed a cohort striving to leave an enduring imprint and legacy.

The top five findings that stood out were not surprising. Family affairs are becoming borderless, be it pursuing education abroad, working in diverse locations, or forming cross-cultural unions – family dynamics have become much more complex within a globalised context.

This impacts not only wealth structuring and asset management but also redefines the scope of financial dialogues beyond conventional advisory roles.

Taxes and regulations:

Rapidly changing regulations, combined with the number of different countries’ and legislative landscapes where family businesses are invested, create a stormy sea for family businesses to navigate.

Family governance:

As families grow and more people want a seat around the table, families need more effective frameworks that ensure open communication around their shared values, educational pursuits, succession planning, and overarching family purpose.

Political stability:

This topic speaks for itself as political polarisation and rising nationalism have created uncertainty across the globe. This volatility directly influences strategic decisions, not only in investments but also in the broader structuring of family wealth.

Philanthropy:

Family businesses have always been at the forefront of giving back and supporting a greater purpose. But with the ever changing world, it is more difficult to preserve legacies, family wealth and the family purpose.

These key findings illuminate the importance of doing long-term planning and structuring — now much more than ever. This cannot be done as a once-off exercise, but it is rather an ongoing journey for the entire family.

Feel free to reach out to us should you relate to any of these findings and would like to take the discussion further. Lookout for three subsequent parts in this series that will bring you more insights from the report.

About the Julius Bear Family Barometer:

The Julius Baer Family Barometer is a yearly global survey to gather the opinions of experts who work with and advise wealthy clients and their families. Once a family-owned bank, Julius Baer has ensured that family remains in their DNA.

This year, they’ve collaborated with PwC Switzerland and its global network of firms to enable more relevant insights and share our common views. In 2023, we surveyed in-house and external experts who shared their insights.

You can read the full report at https://www.juliusbaer.com/fileadmin/publications/Family-Barometer-2023-en.pdf

Listen to PwC’s NextGen Talks Podcast:

The podcast series features family business owners, NextGeners, successful entrepreneurs and professionals.

NextGen Talks seeks to shape the missing middle narrative around African family businesses. Conversations focus on the key issues family businesses grapple with globally – from family governance, succession planning and business continuity, next generation education and transition, family offices, philanthropy, values and purpose and more.

The host engages the guests in light-hearted yet informative conversations to showcase firsthand experiences, challenges and tested solutions in running a family business globally and more specifically Nigeria.

Visit to start listening https://www.pwc.com/ng/en/publications/podcast-series-nextgen-talks.html