EisnerAmper LLP

Annual Private Wealth & Family Office Summit

Enhancing Family Office Operations and Efficiencies: Outsourcing and Additional Opportunities

November 9, 2010

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Enhancing Family Office Operations and Efficiencies - Review

• The Office Needs to be Tailored to Family Needs

– Operations Strategy Should be Clear and Measurable

– All Operations Need to Possess Efficiencies and Adequate Controls

– Reporting and Transparency

• Purpose of a Review of Family Office Operations

– Review of overall operations, procedures, and management

– Recommendations to enhance operations and management

– Additional circumstances that could initiate a review

» What are the Desired Outcomes of a Review ?

» The Review Must be Objective

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Enhancing Family Office Operations and Efficiencies – Outsourcing Model

• Uncertainty Regarding Office Management by Family

• Long-term Legacy Employees Nearing Retirement

• Cost Reductions and Enhanced Efficiencies Desired

• Enhanced Operational Controls Desired

• Additional or More Comprehensive Resources Desired

• Enhanced Reporting Capabilities and Transparency

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Enhancing Family Office Operations and Efficiencies

• Case Study 1 – N Family

– Multi Generations Served by the Office

– Long Legacy of Operation

– Accounting, Financial Reporting, Treasury Functions, Charity

– Why the Operations Review Was Requested

– Discovery: What Was Learned

– Outcomes: What Was Done Based on Observations/Recommendations

» Outsourced Accounting and Bill Paying Functions

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Enhancing Family Office Operations and Efficiencies

• Case Study 2 – C Family

– Multi Generations Served by the Office

– Internal Accounting, Treasury Functions

– Why the Operations Review Was Requested

– Discovery: What Was Learned

– Outcomes: What Was Done Based on Observations/Recommendations

» Design Transition Plan to Adopt Partial Outsourcing Model