Wealth & Risk
Wealth that survives a generation.
We advise family offices, foundation boards and private wealth principals on allocation, risk governance and structuring. Discreet. Long-term. With the clarity an inter-generational transition demands.
- Asset allocation across real estate, equity participations, liquidity and alternative investments
- Risk profiling at family level, not just at account level
- Family-office structuring (Single-Family, Multi-Family, Embedded)
- Inter-generational transition with foundation or holding architecture
The Wealth & Risk Dossier.
Institutional sovereignty is achieved through access to validated sector coupling pathways and rigorous strategic modeling.
Strategic Value Levers
Risk Cascade Mapping
Targeted control and evidence-backed execution to maximize returns and mitigate portfolio risks.
Wealth Preservation
Targeted control and evidence-backed execution to maximize returns and mitigate portfolio risks.
Governance Design
Targeted control and evidence-backed execution to maximize returns and mitigate portfolio risks.
Decision Scenarios
"Implementation of the AME risk cascade across all asset classes."
Ready for a confidential Strategic Audit?
AME principals invite you to a structured evaluation. Let us assess tangible value levers and decarbonization pathways for your portfolio.
Foresight &
Risk Remediation.
Rising fiscal pressure on real-estate special assets and business assets.
Structural separation of the operating business and an asset-holding company.
Risks from the real-estate sector spread into other asset classes.
Isolating individual risks through clear separation of asset-holding entities.
Regulatory Exposure Matrix
Illustrative assessment of portfolio impacts
Model assumptions: ESG has a 60% weight and energy efficiency a 40% weight. The modelled value discount is capped at 15%. Inputs are freely selected scenario values, not measured portfolio or market data.
This illustration does not establish EU Taxonomy or GEG compliance and is not a valuation or investment recommendation. A modelled discount above 5% is only a review signal here; measures require an assessment of the specific asset.
Topics we manage.
Asset Allocation - Family Level
We think wealth not in accounts, but in family generations. Allocation logic with liquidity, inflation and succession considerations.
Risk Governance
Which risks does the family bear knowingly, which unknowingly? Operational, concentration, counterparty, regulatory. Audit + recommendation for risk management.
Family-Office Structuring
Single-family-office vs Multi-family-office vs Embedded office. We compare three architectures with cost, governance and discretion profiles.
Foundation & Holding Architecture
Structuring with notary, tax advisor, foundation board. We are strategic pilot - legal structuring is done by specialised partners.
Inter-Generational Transition
Family charter, succession plan, foundation setup. The difficult conversations need an external sparring partner - we provide structure and empathy.
Compliance & Reporting
Consolidated family reporting across all asset classes. Compliance maps to §34d/§34f, MaRisk, regulatory reporting requirements.
Four phases from first confidential meeting to ongoing quarterly review.
Discreet Sounding (Weeks 1-4)
Under strict NDA. We understand family reality, wealth structure, unspoken topics. First conversations are 60-90% listening.
Inventory & Risk Audit (Weeks 5-10)
Consolidated wealth overview, risk heatmap at family level, succession-path sketch. Output: memo + heatmap that holds in a private advisory.
Architecture Decision (Weeks 11-16)
Family-office structuring, foundation architecture, holding setup. We coordinate notary, tax advisor, external asset managers. Decision memo with three viable paths.
Execution & Stewardship (ongoing)
Contract structuring, implementation, quarterly reviews, annual family-charter updates. We remain strategic pilot over years, not months.
Model your wealth structure.
Every recommendation on this page has a tool behind it.
Holding Structure Calculator
Test how an asset-holding company separates the operating business from family wealth for tax purposes.
Succession Tax Calculator
Quantify inheritance and gift tax on a wealth transition and the effect of relief provisions.
Interest Barrier Simulator
Determine the debt level at which the interest barrier limits the deductibility of interest expense.
Working Capital Simulator
See how much liquidity is tied up in inventory, receivables and payables.
DSCR & Leverage Stress Test
Stress-test the debt-service capacity of your asset-holding entities under interest and cash-flow scenarios.
Executive Scenario Simulator
Play through strategy scenarios with value and cash impact at family level.
Scope
What this service covers
The Wealth & Risk service frames wealth and risk questions of families and investors strategically. Steering individual portfolios belongs to Asset Management. Wealth is considered as a system: operating holdings, real estate, financial assets, liquidity, liabilities, commitments, collateral and the people who decide on them. Whether a company is sold or handed over is prepared by the M&A & Succession service; here the focus is on the consequences for family wealth, such as liquidity after a sale, concentration after a handover or the question of who will take which decisions in future. The strategy of the family business itself belongs to Strategy & Transformation, and the industry-specific risks of individual assets belong to the respective sector. This service does not include activities that require a licence under sections 34d, 34f or 34h of the German Trade Regulation Act (GewO) or a comparable authorisation, i.e. investment advice, investment brokerage, fee-based financial investment advice, insurance advice and insurance brokerage, nor portfolio management, legal advice or tax advice.
Starting point
Entrepreneurial wealth is often spread across holdings, real estate and liquidity. It has grown over decades, sits in several companies and with several banks, and is looked after by different advisers who each see only part of the picture. A family's risk, however, does not arise from a single account but from the way all the parts interact.
Make the wealth structure visible
A consolidated overview is the basis for any risk view at family level. It is often missing because assets are held separately in the holding company, the operating company, private wealth and investments, with different reporting dates and valuation approaches. Without it, neither concentrations nor liquidity needs can be assessed reliably, and every strategic decision, from investment to succession, rests on partial pictures.
Organise governance
Clear responsibilities help preserve wealth across generations. Who decides on distributions, new holdings or loans, who stands in if someone is unavailable, and how are family members involved who are not active in the business? Open answers usually only surface in a conflict or an emergency.
The business as the largest position
In many entrepreneurial families, income, wealth and often private collateral depend on the same company. Such a concentration can be a deliberate and sensible choice if the family understands and steers the business. It should, however, be visible as a decision rather than persist as a side effect of the past.
Wealthy, but not liquid
Large parts of entrepreneurial wealth are tied up: in company shares, real estate or fund commitments with later capital calls. Tax payments, debt service, settlement payments to family members or a missed distribution can therefore cause shortfalls even when net wealth is high, and these then have to be resolved under time pressure.
Financing and interest rates
Real estate and holdings are frequently debt-financed, sometimes with clustered maturities and bank covenants. Changes in interest rates and valuations affect debt service, borrowing headroom and asset values at the same time and reinforce one another.
Regulatory change affecting assets
Requirements on energy efficiency, reporting obligations and sustainability disclosures change the value and investment needs of real estate and holdings. Anyone who notices them only at the point of sale or refinancing negotiates from a weaker position and has to catch up on investment at short notice.
Wealth transfer between generations
A transfer affects ownership, influence and liquidity at the same time. Whether a holding company, a foundation or a direct transfer suits the family also depends on whether the next generation wants to take on operational responsibility. Legal and tax structuring is handled by licensed partners, but the economic prerequisites can be clarified early. Unstructured wealth delays every transfer and makes it more expensive.
Many advisers, no overall view
Banks, asset managers, insurance intermediaries, tax advisers and lawyers usually work side by side. Proposals then easily follow the respective offering rather than the family's overall situation. A product-independent assessment creates the basis for comparing proposals and defining mandates clearly.
Liability links between the business and private wealth
Personal guarantees, board or managing director roles and joint liabilities connect private wealth with business risks. These links are often not summarised anywhere and remain invisible without a systematic review. The service makes them visible as part of the risk map; their legal assessment and protection belong in the hands of the responsible specialists.
Discretion as a precondition
Wealth questions touch on family, succession and sometimes conflict. Confidentiality, restricted access to data and a clear agreement on scope and roles therefore come before any analysis.
Work steps from exploration to review
- Stage 01
Explore
Understand the family situation and goals. In a confidential conversation, the occasion, the people involved, expectations and the limits of the mandate are clarified, including the questions that only licensed specialists may answer.
Levers
- Confidentiality
- Clearly agreed scope of the mandate
- Roles and scope limits named openly
- Stage 02
Overview
Present wealth on a consolidated basis. Asset-holding entities, values, liabilities, commitments and collateral are brought together in a wealth overview, each with its reporting date, valuation basis and data source.
Levers
- Complete data basis
- Common reporting date
- Traceable valuation bases
- Stage 03
Liquidity
Plan inflows and outflows at family level. Distributions, rents and income are set against living costs, tax payments, debt service and outstanding capital commitments.
Levers
- Liquidity runway known
- Dates of large payments visible
- Minimum reserve as an agreed rule
- Stage 04
Assess
Compare risks and options. Concentrations, dependencies and financing, counterparty, liability, governance and succession risks are brought together in a risk map and distinguished by whether the family carries them consciously.
Levers
- Concentrations named
- Consciously and unconsciously carried risks separated
- Priorities by significance
- Stage 05
Scenarios
Test resilience. Jointly defined stress cases show how liquidity, debt service and net wealth change if a distribution is missed, interest rates rise, values fall or a key person drops out.
Levers
- Weak points identified before an emergency
- Action thresholds defined
- Stage 06
Structure
Prepare structure and governance. Possible architectures, policies, approval limits and responsibilities are prepared as a decision paper; legal and tax implementation lies with licensed partners.
Levers
- Decision paper with alternatives
- Responsibilities documented
- Handover to specialists properly prepared
- Stage 07
Review
Agree regular reviews. The reporting format, frequency and triggers for an unscheduled review are defined, such as a sale, an inheritance, a major financing or a change in leadership.
Levers
- Reporting lines
- Defined triggers
- Up-to-date data basis
Typical decisions
Which structure suits the family?
Costs, governance and discretion distinguish the possible architectures. Further factors are the number of family members, the size and diversity of the wealth, the need for dedicated staff and how much control the family wants to exercise itself.
Options
- Single family office
- Multi family office
- Embedded office
- Existing set-up with clearly defined responsibilities and reporting lines
Is a concentration held deliberately or reduced step by step?
A high concentration in the family's own business or in one asset class can be rational if the family understands and steers the business. What matters is whether liquidity, collateral and income share the same dependency and what burden the family can bear. Individual investment decisions are taken by the owners together with the appropriately licensed specialists.
Options
- Hold the concentration deliberately, combined with a liquidity reserve, limits and a review cycle
- Reduce the concentration over a longer period according to defined triggers
- Examine a partial sale or the admission of co-shareholders with M&A & Succession
- Have private collateral and liability links to the business released where legally possible
How much liquidity should be available at family level?
Too little liquidity forces emergency sales or expensive bridge financing, while too much unplanned liquidity sits without a purpose. The decisive factors are outflows, payment dates, outstanding commitments and the reliability of inflows.
Options
- Minimum reserve as a fixed runway in months
- Reserve for known large payments plus an agreed credit facility
- Build-up ahead of specific events such as tax payments, capital calls or handovers
How are distributions, withdrawals and investment needs aligned?
The business needs funds for investment and stability, the family for living costs, taxes and commitments. Without a rule, the mood of the moment decides the level of the distribution anew each year.
Options
- Fixed distribution rule with a range
- Needs-based distribution according to the family's liquidity plan
- Retention in the business with a minimum distribution for taxes and living costs
Which risks does the family carry itself, and which are limited or transferred?
Not every risk needs to be protected against, but every risk should be handled deliberately. The assessment shows where a reserve is sufficient and where structural, legal or insurance questions need to be passed to licensed specialists.
Options
- Carry the risk and cover it with a reserve
- Limit it by separating asset-holding entities, examined legally and for tax purposes by licensed partners
- Have the insurance side examine whether it can be transferred
- Avoid the risk by refraining from an activity
How are decisions taken and controlled within the family?
With each generation the number of people involved grows, while their closeness to the business often declines. Clear rules prevent conflicts over wealth from burdening the business.
Options
- Family charter with principles and roles
- Wealth advisory board or family council with rules of procedure
- Policy with approval limits and reporting duties
- Regular review by independent third parties
When and in what form is the wealth transfer prepared?
The choice between direct transfer, a holding company or a foundation depends on the role of the next generation, the liquidity needed for settlement payments and taxes, and the influence the family wishes to retain. Legal and tax structuring is handled by licensed partners; the economic prerequisites are clarified beforehand.
Options
- Early, gradual preparation over several years
- Preparation for a defined occasion
- Have a holding architecture examined where the next generation will be operationally active
- Have a foundation solution examined where the family is not operationally active
How are service providers and reports managed?
Several banks, custodians and advisers deliver different reports and pursue their own interests. The family needs a shared view and clear mandates; selecting specific providers or products is not part of this service.
Options
- Agree a uniform reporting format for all institutions
- Build consolidated reporting at family level
- Record the mandate, costs and reporting duties of each service provider in writing
Value levers and measures
Concentrations
- Metric
- Share of single positions in total wealth: value of the largest position and of the five largest positions divided by net wealth at the reporting date, in per cent; in addition, the share that depends on one company, one location or one bank
- Effect
- Shows dependencies at family level. Makes visible whether a concentration is intended and which liquidity reserve and governance should accompany it.
Liquidity
- Metric
- Available liquidity relative to obligations: freely available funds in EUR divided by planned outflows over the next 12 months; in addition, as a runway in months without new inflows
- Effect
- Makes room for manoeuvre visible. Prevents tax payments, capital calls or a missed distribution from leading to emergency sales or expensive bridge financing.
Cash flow at family level
- Metric
- Free cash flow of the family in EUR per year: distributions, rents and income less living costs, costs of the wealth structure, taxes, debt service and committed contributions
- Effect
- Shows whether the wealth covers ongoing obligations or whether capital is being eroded, and provides the basis for a distribution rule.
Earnings power of holdings
- Metric
- EBITDA per operating company in EUR per year and the share of one company's distributions in all of the family's inflows in per cent, each taken from annual accounts or internal reporting and stating the adjustments made
- Effect
- Links business performance with family liquidity and shows how strongly the private budget depends on a single source of income.
Capital tied up
- Metric
- Share of net wealth that would be available within 3 and within 12 months without significant discounts, in per cent; outstanding capital commitments in EUR with the expected call period
- Effect
- Separates truly available from tied-up wealth and prevents commitments from overtaking available liquidity.
Debt and debt service
- Metric
- Debt service coverage ratio (DSCR) per asset-holding entity as a multiple, loan-to-value ratio in per cent, share of floating-rate debt in per cent and maturities over the next 24 months in EUR
- Effect
- Reveals refinancing pressure, headroom to loan covenants and the effect of interest rate changes on family liquidity at an early stage.
Investment needs
- Metric
- Foreseeable investment needs of the asset-holding entities in EUR per year, for example for modernising real estate, capital increases or additional contributions, stating the source of the estimate and the period
- Effect
- Prevents necessary investments from competing with distributions, taxes and withdrawals for the same liquidity without anyone having set the order of priority.
Resilience in scenarios
- Metric
- Change in net wealth in EUR and in liquidity runway in months for each defined stress scenario, each compared with the base case and over a set period
- Effect
- Makes visible which events the family can absorb from its own resources and where reserves, rules or protection questions need to be clarified in advance.
Time to implementation
- Metric
- Time in weeks from trigger to documented decision; share of asset-holding entities with arranged representation and documented responsibilities in per cent, recorded only as in place or not in place
- Effect
- Shows whether the family remains able to act in an emergency, for example in the event of illness, death or an urgent financing question.
Manageability
- Metric
- Share of net wealth with a current valuation date within the agreed interval in per cent, reporting delay in days after the reporting date and number of open items without a named owner
- Effect
- Decisions are based on current and reconciled figures; gaps in data and responsibilities become measurable instead of merely suspected.
Cost of the structure
- Metric
- Ongoing costs of the wealth structure in EUR per year and as a percentage of net wealth, broken down into administration, advice, custody, reporting and staff
- Effect
- Enables an objective comparison of office architectures and service providers in terms of cost, governance and discretion.
Risks and early indicators
| Risk | Early indicator | Countermeasure |
|---|---|---|
| RiskConcentration risk | Early indicatorA large part of wealth depends on one position; its share is rising without anyone having decided on it | CountermeasureRisk overview at family level; document the concentration as a deliberate decision and combine it with a liquidity reserve, limits and a review cycle |
| RiskUnregulated handover | Early indicatorNo documented succession structure; it is not known whether powers of attorney and representation arrangements are in place | CountermeasureOutline a succession path with licensed partners; clarify economic prerequisites such as liquidity for settlement payments and taxes in advance |
| RiskLiquidity shortfall despite high wealth | Early indicatorThe liquidity runway falls below the agreed minimum; outstanding capital commitments exceed freely available funds; large payments fall into the same period | CountermeasureLiquidity plan at family level with a minimum reserve, payment calendar and action thresholds |
| RiskDependence on a single source of income | Early indicatorOne company's distributions fluctuate or are in doubt because of business performance; private spending is geared to peak years | CountermeasureAgree a distribution rule with the business and its boards; base the family budget on a cautious base case |
| RiskRefinancing and interest rate risk | Early indicatorMaturities cluster; headroom to loan covenants shrinks; the share of floating-rate debt rises | CountermeasurePrepare a maturity profile and stress scenarios; prepare talks with lenders in good time |
| RiskCounterparty and custody risk | Early indicatorA large part of liquidity or securities accounts is held with one institution; reports from different institutions are not comparable | CountermeasureShow the distribution by counterparty in the risk map and agree a uniform reporting format; assessing and selecting specific providers remains outside this service |
| RiskKey person and governance risk | Early indicatorDecisions are left pending; knowledge of accounts, contracts and access rights lies with one person; boards meet without prepared documents | CountermeasureDocument responsibilities, representation and approval limits; emergency overview of where documents are kept and who is responsible |
| RiskLiability links | Early indicatorPersonal guarantees, joint liabilities or board roles are not summarised anywhere; collateral for business loans comes from private wealth | CountermeasureShow links between business and private wealth in the risk map; legal assessment and protection by lawyers and the insurance side |
| RiskRegulatory value risks | Early indicatorNew requirements on energy efficiency or reporting affect real estate and holdings; the resulting investment needs are not planned | CountermeasureFlag affected assets and explore them further in the Real Estate and Energy sectors; include the investment needs in the liquidity plan |
| RiskOutdated or inconsistent data | Early indicatorValues from different sources diverge; reports arrive late; valuations are older than agreed | CountermeasureDefine data sources, reporting dates and owners; resolve discrepancies in a documented way |
| RiskConflicts of interest in advice | Early indicatorProposals come without alternatives; remuneration is not disclosed; the product comes before the question | CountermeasureDecision papers with alternatives and criteria; require providers to disclose their remuneration |
| RiskLoss of confidentiality | Early indicatorWealth data is sent via unsecured channels; many parties have access to complete overviews | CountermeasureConfidentiality agreement before any exchange of data; restrict access to what is necessary; use secure transmission channels |
Links to sectors and services
- Go to topic: Real EstateReal estate as part of family wealth. It ties up capital, often carries a large part of the financing and responds to interest rates, energy requirements and modernisation needs; valuation and asset strategy are explored in the Real Estate sector.
- Go to topic: EnergyHoldings in energy projects. They bring long terms, regulatory dependencies and their own financing structures, which need to be reflected in the family's liquidity and risk planning.
- Go to topic: Tech & GrowthHoldings in growth companies. They are mostly illiquid, involve questions about further funding rounds and dilution, and depend heavily on individual events, which changes concentration and capital tied up.
- Go to topic: M&A & SuccessionSale or handover of the family business. M&A & Succession prepares the transaction; Wealth & Risk assesses what then happens to liquidity, concentration and responsibilities within the family.
- Go to topic: Asset ManagementSteering individual portfolios. Where the risk map shows a need for action on individual properties or portfolios, Asset Management takes over the steering of the respective portfolio.
Approach
- Step 1
Confidential exploration
Understand goals, wealth structure and open topics. Before any documents are exchanged, confidentiality, the people involved, scope and scope limits are agreed.
Result: Shared understanding of the starting point and a scope agreed in writing
- Step 2
Stocktake and risk analysis
Consolidate wealth and frame risks at family level. The basis is the existing documentation, supplemented by conversations with the responsible people and, where approved, with existing advisers.
Result: Memo with risk overview, consolidated wealth overview and risk map
- Step 3
Liquidity and scenario analysis
Plan the family's cash flows and test them in agreed stress scenarios. The scenarios are defined jointly so that they reflect the family's actual concerns and not just standard assumptions.
Result: Liquidity plan, scenario overview and proposed action thresholds
- Step 4
Structure and governance options
Compare possible routes for structure, policies and responsibilities, each with prerequisites, effort, consequences and open questions for legal and tax advisers.
Result: Decision paper with alternatives and criteria
- Step 5
Decision and handover
The owners decide. Contracts, corporate structures, tax matters and investment and insurance topics are handed over to the responsible, licensed specialists; the service coordinates the questions and dates.
Result: Action plan with responsibilities, dates and handover documents
- Step 6
Ongoing review
The wealth overview, liquidity plan and risk map are updated at the agreed frequency and when triggers occur; deviations are discussed with those responsible.
Result: Review report and updated decision bases
Scope of service
Scope limits
- No individual investment recommendation and no brokerage of financial products within this service.
- No legal or tax advice; licensed partners provide it.
- No return or security promises.
- This service does not include any activities that require a licence under sections 34d, 34f or 34h GewO: no insurance brokerage, no insurance advice, no investment brokerage, no investment advice and no fee-based financial investment advice.
- If such activities come into consideration in an individual case, they are not part of this mandate. They require a separate mandate on the legally prescribed basis, including the statutory information and documentation duties. Details of the company's licences are given in the imprint.
- No portfolio management and no asset management: the service has no say in purchases, sales or the selection of individual investments, funds, insurance policies or providers.
- The risk map names questions for the insurance side; checking specific insurance contracts for coverage gaps is insurance advice and not part of this service.
- Statements on holding, foundation or succession structures describe economic prerequisites and consequences; legal and tax structuring, contracts, wills and notarisations are the responsibility of lawyers, tax advisers and notaries.
- Powers of attorney, wills, marriage contracts and shareholder agreements are only recorded as to whether they exist; their content is not analysed.
- No review of compliance with supervisory requirements and no confirmation of regulatory compliance.
- The linked calculation tools provide orientation based on the assumptions entered; they do not replace legal, tax or investment advice.
Decision rights
- Owners and their boards decide on the wealth.
- AME frames questions and prepares decisions.
- The owners determine which concentration is held deliberately, which reserve is built and which risks are carried themselves.
- The owners approve which documents and information go to whom; existing advisers are only involved after approval.
- Investment, insurance, legal and tax decisions are taken by the owners on the basis of advice from the appropriately licensed specialists, who are responsible for their own work.
- In family councils, advisory boards or foundation bodies, their articles and rules of procedure apply; AME contributes in an advisory capacity and does not hold any board position.
- The owners decide on the selection and appointment of service providers.
Information needed
- Wealth structure and goals
- Income, costs and obligations
- Liquidity planning
- Existing policies and responsibilities
- Overview of companies, holdings and asset-holding entities with ownership percentages
- Statement of assets with reporting date, valuation basis and source for each position
- Liabilities with maturities, interest terms, collateral and loan covenants
- Outstanding capital commitments, guarantees and other contingent liabilities
- Annual accounts or internal reporting of the operating companies and the distribution history
- Foreseeable events in the coming years, such as a sale, succession, major investments or tax payments
- Overview of existing insurance policies by type and insurer, without contract review
- Indication of whether powers of attorney, wills, shareholder agreements or a family charter exist, without their content
- List of the advisers and service providers involved and their roles
Deliverables
- Consolidated wealth overview
- Risk overview at family level
- Outline of possible structures and next steps
- Risk map with concentrations, dependencies and early indicators
- Memo and summary chart for presentation to an advisory board or family council
- Liquidity plan at family level with payment calendar and minimum reserve
- Scenario overview showing the effect on liquidity, debt service and net wealth
- Decision paper on structure and governance with alternatives, criteria and open questions for specialists
- Action plan with responsibilities and handover documents for legal, tax, insurance and investment specialists
- Emergency overview: where documents are kept and who is responsible if someone is unavailable
- Review report at the agreed frequency
When a source of income fails: liquidity at family level
Hypothetical example with freely chosen, rounded model values and no link to any family or mandate
- Method
- Static, undiscounted liquidity calculation at family level: opening balance plus planned inflows minus planned outflows gives the balance at the end of the period. A base case is compared with a stress scenario in which the family business's distribution fails and debt service rises. The runway is the opening balance divided by average monthly outflows.
- Period
- 12 months from the reporting date, viewed at the end of the period.
| Item | Value | Unit |
|---|---|---|
| Freely available liquidity at the start | 2,000,000 | EUR |
| Planned inflows | 1,600,000 | EUR in 12 months |
| Planned outflows | 2,400,000 | EUR in 12 months |
| Liquidity at the end of the period, base case (2,000,000 + 1,600,000 - 2,400,000) | 1,200,000 | EUR |
| Runway without any inflows (2,000,000 divided by 200,000 outflow per month) | 10 | months |
| Share of the distribution in all inflows (1,200,000 divided by 1,600,000) | 75 | per cent |
| Liquidity at the end of the period, stress scenario (2,000,000 + 400,000 - 2,500,000) | -100,000 | EUR |
| Gap to the minimum reserve of 500,000 EUR in the stress scenario | 600,000 | EUR |
Assumptions
- Freely available liquidity at the start: 2,000,000 EUR
- Planned inflows: distribution from the family business 1,200,000 EUR, rental income after operating costs 400,000 EUR
- Planned outflows: living costs and costs of the wealth structure 600,000 EUR, tax payments 600,000 EUR, debt service 400,000 EUR, capital calls from existing commitments 800,000 EUR
- Stress scenario: the distribution fails completely, debt service rises by 100,000 EUR due to higher interest rates, all other values remain unchanged
- The family has set a minimum reserve of 500,000 EUR as a rule
- Timing of payments within the year, returns on liquidity, changes in value and tax interactions are not considered
Limits
The example only illustrates the logic: even net wealth that exceeds liquidity many times over offers no protection against a shortfall if three quarters of inflows come from one source and commitments are firmly planned. It makes no statement about any particular family, about taxes or about appropriate reserves. Whether the gap is closed by a higher reserve, different timing of commitments, a credit facility or a distribution rule is for the owners to decide; they clarify investment, financing and tax questions with the appropriately licensed specialists.
Further topics
Existing pages on this service. Some entry points are still brief or belong professionally to another service; they are placed here according to their role for Wealth & Risk. The calculation tools provide orientation based on the assumptions entered and do not replace legal, tax or investment advice.
- Family officesThe target group page for family offices, focusing on the substance of real estate portfolios across generations.Open page
- Holding Wealth ShieldTool for framing holding structures.Open page
- Risk map (Risk Envelope) (page in progress)Entry point to the risk map covering exposure, liability, liquidity, concentration, succession and governance. The page is still being expanded; the content of this profile forms its professional basis.Open page
- Wealth and complexity profileAnonymous self-assessment of structure, liquidity events, reporting and support needs, as preparation for a conversation.Open page
- Cash flow calculatorMulti-year cash flow planning and early detection of liquidity shortfalls.Open page
- DSCR and leverage stress testDebt service capacity of asset-holding entities under interest rate and cash flow scenarios.Open page
- Executive scenario simulatorRun through scenarios with value and cash effects, as a complement to scenario analysis at family level.Open page
- Working capital simulatorHow much liquidity is tied up in operating companies before it becomes available as a distribution.Open page
- Succession tax calculatorOrientation on the liquidity effect of inheritance and gift tax in a wealth transfer; the tax assessment remains with the tax adviser.Open page
- Interest barrier simulatorOrientation on the level of debt at which the interest barrier limits the deductibility of interest; the tax assessment remains with the tax adviser.Open page
- Portfolio M&A for family officesAcquisitions and disposals of holdings from a family office perspective. The transaction is led by M&A & Succession; its effect on family wealth is assessed here.Open page
- Succession timelineTime planning for a business handover, as a tool of the M&A & Succession service.Open page
- Governance frameworkBoards and decision rights within the company, to which family governance connects.Open page
- ESG reportingReporting obligations and taxonomy questions that affect holdings and real estate within family wealth.Open page
- Asset ManagementThe service for steering individual portfolios.Open page
Method and evidence
Only content already published. Information on licences is shown on the hub page itself and in the imprint. The linked pages describe approach, quality standards, terminology and mandatory disclosures; they are not evidence of impact for individual mandates. Figures are shown only once they are evidenced.
Frequently asked questions
Does AME give investment recommendations within this service?
No. The service frames wealth and risk questions strategically, without individual investment recommendations. It describes structure, liquidity, concentrations and scenarios and prepares decisions; selecting individual investments, funds or insurance policies is not part of it.
How does the service relate to the licence details in the imprint?
The imprint lists the company's licences. The Wealth & Risk service does not include any activities that require such a licence, i.e. neither insurance nor investment brokerage or advice. If such activities come into consideration, they are agreed separately, on the legally prescribed basis and with the statutory information.
How does the service differ from asset management or insurance brokerage?
Asset managers decide on investments, insurance intermediaries arrange contracts. Wealth & Risk does neither; it looks at the overall structure of the wealth, including liquidity, concentrations, liability links and governance. The result is a basis for decisions and clearly defined questions for the responsible specialists.
Who is the service intended for?
For entrepreneurs with complex wealth structures, family offices and wealthy families, successors in family businesses, foundation boards, and managing directors and shareholders whose private wealth is linked to business risks.
What does risk at family level mean?
Risks are not viewed per account or per company but in combination: if income, wealth and collateral depend on the same business, or if large payments fall into the same period, a risk arises that is visible in no individual report. The risk map brings these links together.
Which documents are needed to get started?
For an initial conversation, a rough overview of companies, significant assets, liabilities and upcoming events is sufficient. The stocktake completes the data step by step. For powers of attorney, wills or shareholder agreements, only their existence is recorded.
How confidential is the work?
A confidentiality agreement is concluded before any documents are exchanged. Access is limited to those involved, and information is passed to third parties only after approval. References are not named without express consent.
How often should the wealth structure be reviewed?
The frequency is agreed in the mandate; a regular review, for example once a year, is common. An additional review is worthwhile on occasions such as succession, a sale, an acquisition, major financing, changes in the family or significant market shifts.
Does AME work with existing advisers?
Yes, to the extent approved by the owners. Banks, asset managers, tax advisers, lawyers and notaries keep their tasks and responsibilities; the service provides a common data basis and clearly formulated questions for the respective specialists.
How long does an initial stocktake take?
That depends on the number of asset-holding entities, the data situation and the availability of those involved. The timetable is set in the mandate after the exploratory conversation; a flat duration cannot responsibly be promised.
Do the linked calculation tools replace advice?
No. The tools calculate with the assumptions entered and provide orientation. They replace neither the assessment in the overall context nor legal, tax or investment advice.
Probe discreetly in a structured conversation.
60 minutes under strict NDA. We listen, understand the family and indicate whether a mandate would hold - at no cost, no follow-up obligation.