Tomarial Lawyers, Economists and Consultants has decided to strengthen its area dedicated to Family Businesses, specialized in advising family offices. Encompassed within the fiscal and legal areas of Tomarial, it is led by the partners Tomas Vazquez Lepinette, Miguel Angel Molina and the associate Ana Garcia Gandia. This is an area that has grown steadily in recent years and has a group of prominent family offices among its client portfolio. As Miguel Ángel Molina explains, “this figure is a very useful instrument, a platform for managing large assets generated by a family business and that entails multiple benefits; That is why more and more family offices are being created and their growth has been exponential in recent years, especially in the Valencian Community, where there is a long tradition of family companies. By reinforcing the Family Business area, we respond to a growing demand from our customers”.

Tomarial partner Miguel Ángel Molina explains that “family businesses are generating a heritage, which needs to be preserved and managed professionally. Over time it becomes clear that it makes no sense for the financial department of a company to have to be aware of the family wealth and therefore a family office is created to manage that wealth. It is recommended from a tax/legal point of view and also because of the family handover: as the new generations assume a more important role in the management of the company, the advantages of separating the parent business from the family assets are perceived”.

Molina highlights the 3 relevant objectives that a family office fulfills: “First, to preserve the assets that the main businesses of the family have been generating, separating the risks of the business activity from the family assets. It also serves as a family union, because some members participate in the management of the main business and others do not. In this way, all family members are involved and input into the management of the estate. And it also serves as a laboratory of ideas, an incubator for projects and investment; drives new actions and new businesses”.

From Tomarial they point out that the asset management of a family office also allows tax and legal optimization, as well as facilitating the succession planning of the family business. “It helps everything to be more orderly at the time of assuming a generational change or a hereditary or inter vivos transmission. From our experience, a company that over the years has been generating real estate and/or financial assets reaches a point where it is convenient to transfer said assets outside of its parent company, because it forces it to manage assets that have nothing to do with your core business; a professionalized management of their real estate and financial assets will allow them to avail themselves of greater benefits, exemptions or tax incentives, as well as reinvest in other businesses in a more efficient way”, highlights Miguel Ángel Molina.

Useful for investing and disinvesting

Ana García Gandía, as an expert at Tomarial in this area, underlines another important factor of family offices, such as facilitating disinvestment: “In the face of third parties, when you want to sell or give entry to an investment fund in your company, it is easier if a separate company and equity structure already exists. We have had cases of inflows of funds in family businesses and this has been relevant: normally the fund is interested in the parent business and it can greatly complicate the operation that all assets are within its same structure. In recent times there are more and more inflows of venture capital funds in Valencian family businesses. And for that you have to be prepared, with adequate tax planning for assets, the chances of success in any entry of investors, disinvestment or sale increase.”

As a firm specializing in advising family businesses, Tomarial highlights the importance of the family office in avoiding corporate conflicts. Partner Miguel Ángel Molina highlights his ability to solve current or future disagreements: “For example, if a member of the family wants to divest or needs liquidity. The family office can provide solutions: it can respond to that need without compromising the continuity and stability of the company, without affecting the core business”. He also highlights the investment news of family offices: “We are witnessing a strong increase in investment through venture capital companies as investment vehicles with very attractive taxation. Family offices are becoming an important player in the financial sector and also an investor.” In short, concludes Tomás Vázquez Lépinette, founding partner of Tomarial and accredited professor of Commercial Law, the family office combined with a good family protocol is an essential instrument for the best management of the personal and business assets of business families”.

This news has been picked up by the digital media of Valencia Square e Magazine interface.

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