Accessability Links
Cookies on our website
By continuing to use this website we will assume you are happy to receive cookies as outlined in our cookie policy
Accept Policy

KPMG’s head of family business makes New Year predictions

Jan 08
Share this story:
KPMG’s head of family business makes New Year...

Tom McGinness, head of family business at KPMG, has set out the areas he’s expecting to be top priorities going forward into 2021.

The first of these is for everyone within a business to ensure they are all contributing to a shared purpose. Such a move is particularly important in a post-Covid business world as strong connections are being made between clarity of purpose and the commercial performance of an organisation.

Secondly, tax is likely to be on the mind of those heading up family businesses, as changes are being proposed to both inheritance tax and capital gains tax. Add this to a possible wealth tax to be unveiled in the Spring Budget in March and effective succession planning becomes an almost impossibility.

Diversification is expected to be a huge trend in 2021, as many businesses move into different areas to mitigate risk and ensure there’s wealth to pass on to future generations of the family.

Attracting and retaining staff is an issue that has been well-documented in family businesses in recent years, but the added pressures of the pandemic have made addressing it all the more urgent.

Environmental, social and corporate governance (ESG) is important to younger generations, KPMG has been told by many of its clients and this has been backed up with research. As these family members take on more prominent roles within businesses, they are ensuring their practices align with these beliefs.

The challenges faced by many family businesses over the past year will lead to increased scrutiny of governance structures. Potentially strained family relationships will require concerted efforts to communicate, make decisions and solve problems.

Resilience is connected to governance, but looks more specifically at how these structures manage risk. According to Mr McGinness, employing multiple governance tools could be the best way for family businesses to support all the members of each generation.

A move towards systems and data, which has been seen in recent years, is likely to gain momentum throughout 2021. It will help with everything from strategic planning to managing liquidity as companies turn to reliable information to aid in commercial decision making during uncertain times.

Mr McGinness spoke of the shift in mindset that is becoming evident. He said: “I see increasing evidence that families are thinking more about future opportunities than present concerns. There’s an exciting degree of planning their business of the future, from new markets to new products or new processes, often with digital transformation at its heart.”

Finally, more advisors are expected to be deployed as businesses look outside of the family for guidance amid a rapidly changing environment. The trend reflects a need to move away from traditional practices in a bid to adjust to new ways of working.

Search for the latest management consultancy jobs and consulting recruitment opportunities, or contact us on +44(0)207 089 9017.

Share this story:
Add new comment
Jobs Related to this Post
5 result(s) found 
Page 1 of 1 

£35k-£50k plus bonus, benefi...
Cambridge United Kingdom
Our client is a management consultancy focusing on the telecommunications industry. They specialise in undertaking rigorous data-driven and quantitative assessments to support major strategic and
£90k-£120k plus excellent bo...
Central London
Our client is a rapidly growing Software as a Service (SaaS) business, pioneering a product that drives board effectiveness for decision makers and directors
£40k plus excellent bonus, benefi...
Central London and Work From Home
Our client is helping change the world of work forever, based around one powerful truth: as people flourish, so the business will thrive.  In response to increasing demand for what they
£45k-£75k plus stock options...
Work from Anywhere, UK hours worked
Our client are open source pioneers, innovators changing the world. Their driving mission: to revolutionise bioinformatics and biomedical data analysis forever. They have a unique genomics
£60k-£80k plus bonus, benefi...
Central London with good work-life bal...
The role Our client are looking for a Senior Consultant to join our strategy consulting team. All projects involve extensive day-to-day contact with both our clients and thought leaders across the