Cover Anna Wong, Joud Aboud and Richie Eu at the Family Office Forum on August 29 (Photo: courtesy of FEW)
Anna Wong, Joud Aboud and Richie Eu at the Family Office Forum on August 29 (Photo: courtesy of FEW)
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The Family Office Forum, hosted by Female Entrepreneurs Worldwide (FEW) at the Rosewood Hong Kong on August 29, brought together industry leaders to discuss the challenges faced by family offices
On August 29, The Family Office Forum, hosted by Female Entrepreneurs Worldwide (FEW) held a luncheon. Among the highlights was a panel discussion on family succession planning, featuring Richie Eu, managing partner of mergers and acquisitions and a fifth-generation member of his family’s Traditional Chinese Medicine company Eu Yan Sang, Joud Aboud of the Ghassan Aboud Group conglomerate based in the Middle East, and moderator Anna Wong, the founder of FEW. The session explored strategies for ensuring the longevity of family businesses while navigating generational transitions.
Here are five key lessons that emerged from this impactful discussion:
Encourage independence before joining the family business
One of the most compelling points raised by the panellists was the benefit of younger family members working outside the family business before joining it. This allows them to gain experience, make mistakes and develop a broader skill set in an impartial environment. By the time they return, they not only bring valuable insights but also a renewed respect for the family enterprise. “My father told me to make mistakes elsewhere before joining the family business,” Eu said laughing.
The critical role of governance
The discussion highlighted governance as a cornerstone of successful family businesses. Establishing clear rules, roles and decision-making processes helps prevent misunderstandings and ensures accountability. The panellists underlined that strong governance structures can safeguard the business from internal disputes and external pressures, enabling it to thrive in the long term.
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Split leadership roles for objectivity
A recurring recommendation was the importance of separating the roles of C-suite roles in family businesses. “The chairman and the CEO cannot be from the same family. We want the best person to run the business, not just a family member,” said Eu. By ensuring these roles are held by individuals with the right skills rather than defaulting to family members, the business gains a more professional structure.
This separation also mitigates potential conflicts of interest and helps maintain a balance between family influence and business expertise. “For example, in Japanese family businesses, if the son isn’t capable, they adopt a qualified CEO who takes on the family name to ensure the legacy continues,” he said.
Address family conflicts proactively
Family businesses are often susceptible to interpersonal conflicts, which can jeopardise both relationships and business operations. The speakers highlighted the value of conflict resolution mechanisms, such as regular family meetings, third-party mediators and clearly written agreements. Addressing disputes early and constructively can preserve both the business and family harmony.
Aboud said, “Recently we've been having family meetings once a month. My father, who is the chairman, will bring my uncles and me into a room, and ask us to discuss everything that’s bad—and he’ll force us to speak,” said Aboud.
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Plan for long-term sustainability
Succession planning is not just about handing over control; it’s about ensuring the continuity and growth of the business for future generations. The panellists emphasised the need for a strategic approach, including identifying potential successors early, providing them with the necessary training and involving them in key decisions gradually. This ensures a smooth transition and instils confidence among stakeholders.
Credits
Photography: Courtesy of FEW
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As Content Director at Tatler Hong Kong, Tara shapes the brand's editorial vision across social, digital and print, and reports on Asia's most influential figures — from CEOs and leaders across business, style and the arts. In her dual role as Head of VIP, she also drives the planning and execution of Tatler's flagship IPs, curating star-studded events and building the relationships and communities that define the brand. Born and raised in the Middle East, she honed her craft in Dubai, crafting communication strategies for luxury brands across the Gulf. Follow her on Instagram @tarasobti.
