Family Business
Family constitution vs Civil Codes
2022年4月28日 Family Business
Generally speaking, after the World War II, the winner countries were worried about the Japan’s recovery in terms of its economy. Especially wealthy families were potential powers. Therefore, after the Shoup Report recommended Japanese governments’ reconsideration of its tax system, the government imposed the high inheritance tax ratio, This hit influential families and they have, …
The secret of resilience, from JP companies with 300yrs history
2021年7月27日 Family Business
Under the COVID pandemic, more and more family businesses have asked the bankruptcy procedures. This is not only due to their financial status but also the lack of successors. As many of JPs family businesses have had that successor issue, under COVID, they easily tend to give up keeping their businesses. Around 2014, the …
The family business tragedy-Otsuaka Furniture case-
2021年5月3日 Family Business
Today, I would like to share my ideas on why the tragedy happened in that family business. Otsuka is one of the top furniture companies founded in 1969. Due to the high economic growth era in Japan in seventies and eighties, they have expanded their business. Katsuhisa, (Katsu), the founder and the father of Otsuka …
What’s wrong with Archegos? Part2
2021年4月22日 Family BusinessInvestment Highlights
We were talking about why Bill failed despite of religious behaviors. As Kazuo Inamori, the founder and honorary chairman of Kyocera group, stresses that top management should have religious mindset so that he can maintain ethical behaviors. However, even though Bill had remained very humble and devout Christian, he made such a huge mistake, and …
What’s wrong with Archegos? Part1
2021年4月20日 Family BusinessInvestment Highlights
A couple of weeks ago, due to Archegos default, several global financial institutions got a lot of loss. As I was working for a bank around Lehman brothers’ clash in 2008, I am interested in Archegos case: whether we could find the similar background and mechanism as we saw for Lehman in the past. What …
Now it’s time to diversify your assets for family business, why FB is active?
2020年11月5日 Family BusinessMarket Trend
Since COVID-19 pandemic, family businesses in Japan have been quite active in terms of asset diversification. Not only real estate companies but also other industries have been acquiring properties in central Tokyo. The background to facilitate their activities are as follows; 1 Prime asset acquisition 2 Decent price 3 Liquidity, cheap finance 4 …
FB succession list, Part 2
2020年10月30日 Family Business
In our previous Blog, we were talking about the checklist by which family business successor reconsider his/her succession is right or not. If even one of the following is checked, next generation can consider the succession. 1 No doubts for “I must succeed”, no other options 2 Ritual events among family are actually trouble some …
“To succeed or not to…” Succession check list Part 1
2020年10月26日 Family Business
Once in a while, I have some chances to be involved in family business succession discussions and I would like to summarize a check list for potential successors to get decided. The list of “To succeed or not to…” The check list is as follows; 1 No doubts for “I must succeed”, no other options …
The empire collapse: JPs family business case
2020年10月19日 Family Business
The names in the following are fictitious. Cha has been a well-established Japanese family. They own and operate a group of academic institutions, high-school, cram school, and college, all of them are under their business arm. Victor (89) is the founder, and the chairman of the group. Abe, Victor’s first son (62) committed suicide due …
Low inheritance tax ? or high profit? – JPs family business dilemma-
2020年10月12日 Family Business
President Henry, who owns and manages the company Dash, asked Mr. Inamori* the following three questions. Tax advisor encouraged us to make business loss, to reduce the share price, so that we can minimize the inheritance tax, should we follow his advice? Is that justified that company assets are liquidated to pay inheritance tax ? …
