For confidentiality purposes some names and references in these descriptions have been modified in order to protect the identity of the client.
Fourth Generation Family. $450 million in net worth, the families in this situation had been arguing over the direction and performance of several investments jointly owned by the families for many years. Over the course of several years, The Development Group assisted the families in resolving multiple issues including the sale of certain assets, managing complicated tax issues and developing better governance practices.
Large Trust. A third generation family with net worth of $200 million and diversified interests in business and real estate suffered a liquidity crisis having to do with rapid deterioration of a holding in a public company and use restrictions on some of its real estate holdings. With our guidance, relations with a major financial institution were repaired, debt reduced significantly, securities litigation begun in connection with the public company investment and a new development plan was put in place to begin monetizing the real estate. At the same time, we were able to advise the trust concerning one particular investment that resulted in a tax saving of $35 million.
Fifth Generation Family. The current generation received distributions of certain assets that caused disagreement among the grantees about business matters and began to threaten family harmony. After conferring with each heir, we were able to identify areas of consensus upon which to begin building a plan for the management of the assets that would satisfy the various economic interests while preserving family unity. Net worth $50 million.
Fourth Generation Family. This fourth generation family owns a business valued in excess of $750 million. We were referred to help address a variety of family and corporate governance issues including family compensation, business management structure, strategic alignment within the business between the family’s financial interests and the executive compensation plan, transition to the next generation and a variety of similar issues. TDG conducted extensive interviews with family members and with senior managers to identify relevant issues and begin a process of reconciliation.
Second Generation Family. Value of the business is approximately $120 million. We were referred by a commercial bank and worked with the current generation of management in a mentor-coach capacity to help restructure governance practices and broaden management.
In addition to these specific family situations, the Principal has also served as Chair of a NASDAQ company and a large private company currently involved in merging with a public company.