Case Study: The Blueprint for Generational Success in LATAM Family Businesses

Case Overview: Family Business Governance v. Generational Risk

Saltiel Law Group successfully analyzed the critical role and inherent challenges of family-owned enterprises in Latin America. Family businesses are the undisputed backbone of the regional economy, generating approximately 60% of the region’s GDP and providing the majority of formal employment. This analysis, based on the expertise of Moisés Saltiel, provides a critical precedent for business families seeking to transcend generations and overcome the challenge that only about 12% of family businesses survive past the third generation.

The Challenge: Overcoming the Succession Gap

The core challenge for these businesses is the transition from a founder-led model to a professionally governed structure. While the family model ensures a long-term vision and resilience, it often lacks the formal governance required for continuity. This "succession gap" creates high risk.

Our analysis demonstrates that the long-term health and stability of the family business depend on eliminating internal "defects" that could lead to collapse, similar to a real estate fraud scenario:

• Active concealment of material defects: This is equivalent to the failure or refusal to formalize succession and corporate governance plans. The absence of clear rules effectively conceals future conflicts.
• Affirmative misrepresentation: This is equivalent to the confusion of family roles (parent, sibling) with managerial roles (CEO, director). This distorts the business structure, leading to conflicts of interest and inefficient decision-making.

Legal Strategy and Precedent

Saltiel Law Group advises on a strategic legal and governance framework to mitigate these risks. We successfully argue that longevity is achieved by adhering to key exceptions to the "buyer beware" (or "business beware") principle, specifically through:

• Formal Family Protocols and Governance: Instituting family councils, assemblies, and formal legal protocols to manage dynamics and preempt conflict.
• Institutionalization: Implementing professional boards and separating family ownership issues from executive management decisions.
• Cross-Border Structuring: For international expansion (a growing trend), establishing sophisticated legal frameworks and asset protection to secure the legacy globally.

The Verdict and Its Significance

The conclusion of this case study is clear: Family enterprises are the engine of LATAM’s economy, but their survival is not accidental. The strategic guidance provided by experts is indispensable. This ruling (analysis) provides critical precedent for all business families: realtors (business advisors) are not immune to accountability when their actions cross the line into fraudulent or deceptive practices (or failure to plan). By professionalizing governance, families secure a more sustainable, competitive, and inclusive future for the region.

Protecting Business Interests

This victory (expert finding) serves as a powerful reminder to both owners and leaders. For business families, it reinforces that the legal and governance system can provide recourse when they are proactive against generational risk. For advisors, it underscores the serious consequences of ignoring the necessity of formal structures.

Saltiel Law Group handles complex commercial governance and wealth preservation matters involving generational succession, international expansion, and strategic legal structuring throughout South Florida and Latin America. Contact us today.