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Business Valuation Trends Redefined: What’s Changed, What Hasn’t, and What You Can Do? 

Business Valuation Trends

Business valuation today is shaped by more variables than ever – intangible assets, real-time data, shifting investor sentiment, and sector-specific pressures. As business valuation trends continue to evolve, the tools and expectations have changed, but the core question remains the same: what is your business truly worth, and why? 

Let’s explore how valuation is changing, what fundamentals continue to anchor it, and how businesses can adapt to strengthen their position in an uncertain market. 

Key Business Valuation Trends: What’s Changed? 

1. Intangible Assets Take Center Stage 

Historically, valuation models have leaned heavily on tangible assets and financial performance. Today, intangibles such as brand strength, intellectual property, customer data, software, and proprietary algorithms have become core to assessing enterprise value. For many modern businesses, especially in tech and services, these assets now drive the majority of valuations. 

2. Valuation is More Data-Rich and Real-Time 

Access to alternative data sources, AI-assisted forecasting, and real-time analytics has transformed how valuation is conducted. Tools can now pull from web traffic, customer sentiment, supply chain data, and competitor insights, leading to more dynamic, forward-looking models with deep research and big data insights. 

3. Sector-Specific Trends are Driving Multiples 

Industry context matters more than ever. As business valuation trends become increasingly sector-specific, areas like AI, clean energy, fintech, and cybersecurity are seeing record-breaking multiples, while others face valuation compression. The ability to apply sector-specific benchmarking and trend analysis is now essential for accurate and credible valuations. 

4. Geopolitical and Regulatory Risks Are Embedded 

Valuation today factors more macro risk than ever before – supply chain fragility, regulatory scrutiny, regional instability, and policy shifts. Dealmakers and investors are pricing in volatility, and discounting valuations accordingly when exposure is high. 

5. Sustainability and ESG Metrics Matter 

Increasingly, investors are incorporating ESG factors into valuation frameworks. Companies with strong sustainability credentials, ethical governance, and risk-managed supply chains are seeing valuation premiums particularly in regulated or ESG-conscious markets. 

Key Business Valuation Trends: What Hasn’t Changed? 

1. Cash Flow Still Rules 

No matter how much changes, the Discounted Cash Flow (DCF) method remains foundational. The ability to generate future cash, adjusted for risk and time, is still one of the most reliable ways to assess long-term value. 

2. Comparables Still Count 

Market-based methods using precedent transactions and trading multiples are still widely used. These approaches remain relevant in the context of evolving business valuation trends, providing important guardrails especially when paired with sector insights and expert judgment. 

3. Due Diligence is Still Non-Negotiable 

No valuation holds weight without thorough due diligence. Understanding the financials, validating the assumptions, checking legal, tax, and operational factors, these steps remain as critical in 2025 as they were a decade ago. 

4. Valuation is Still an Art and a Science 

While models and algorithms have improved, valuation still relies on expert interpretation. It’s about understanding context, timing, market cycles, and strategic fit. 

How to Improve Your Valuation in Times of Uncertainty? 

  • Use Debt Strategically 

If you’re using debt, ensure it’s to fuel profitable growth, not just to cover operating costs. Buyers funding deals with debt will closely evaluate whether your growth potential outweighs future repayment risks. Growth-backed leverage supports higher multiples. 

  • Invest in a Strong Second-Tier Management Team 

A reliable leadership team that stays post-sale reassures buyers and reduces concentration risk. If the business relies too heavily on the current owner, it may suffer a valuation discount. 

  • Reassess Your Customer Base 

Buyers prefer resilient, recurring, and high-margin customer relationships. If your customer profile doesn’t reflect this, consider repositioning or restructuring the sales strategy or product/service line to attract more strategic and attractive clients. 

  • Build Around a Desirable Business Model 

Don’t rely on legacy performance. Actively develop a business model that aligns with current market needs and reflects the direction of evolving business valuation trends. Demonstrating scalable, forward-facing growth shows that your business is built to outperform the market average and justifies a stronger valuation. 

  • Leverage Real-Time, Accurate Information 

Use timely data for decision-making, across revenue, costs, operations, and market opportunities. This strengthens your narrative during negotiations and due diligence. It shows buyers you operate with transparency and rigor, qualities that justify a valuation premium. 

How MS Helps Businesses Respond to Changing Business Valuation Trends 

At MS, we help businesses enhance and defend their business valuation by aligning financial performance with strategic clarity, market expectations, and operational readiness. Whether you’re preparing for a sale, raising capital, or tackling uncertainty, our valuation experts stay ahead of evolving business valuation trends, combining real-time data, sector insight, and regional expertise to position your business for premium outcomes. 

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How Foundations Can Benefit from the New Regime of Unincorporated Partnerships in the UAE?

How Salary Benchmarking in the UAE is Shaping Talent Strategy

The introduction of Ministerial Decision No. 261 of 2024 marks a pivotal moment for family foundations in the UAE. By allowing eligible entities to apply for Unincorporated Partnerships in the UAE, the new framework offers a path to tax transparency, operational simplicity, and greater alignment with long-term legacy goals. However, taking advantage of this opportunity requires a deep understanding of both legal structure and strategic intent.

Foundations must now consider how their setup aligns with Unincorporated Partnership criteria, how pass-through taxation impacts beneficiaries, and what ongoing compliance will entail. From wealth preservation and succession planning to regulatory reporting and control, this shift brings both challenges and powerful potential for those looking to structure their foundations with clarity and purpose.

Understanding Unincorporated Partnerships in the UAE

An Unincorporated Partnership is a contractual arrangement between two or more parties who agree to carry on a business without creating a separate legal entity. Unlike corporations or other registered entities, Unincorporated partnerships are not distinct from legal persons, but they do offer some significant operational and tax advantages.

In the context of family foundations and private structures, the Unincorporated partnership model can be highly attractive:

  • Pass-through tax treatment – Income is taxed at the partner or beneficiary level, not at the entity level.
  • Operational simplicity – Unincorporated partnerships may involve less administrative complexity compared to incorporated entities.
  • Alignment with purpose – The model naturally aligns with goals like wealth preservation, succession planning, and philanthropy.
  • Mandatory registration – To access the benefits of the Unincorporated Partnership regime, entities must formally register and obtain approval from the Federal Tax Authority (FTA). Only after successful registration can the pass-through tax treatment and other provisions be applied.

Unincorporated Partnerships in the UAE: A Closer Look at Ministerial Decision No. 261 of 2024

Ministerial Decision No. 261 of 2024, issued by the UAE Ministry of Finance, provides clarity on how Unincorporated partnerships in the UAE will be treated for corporate tax purposes under Federal Decree-Law No. 47 of 2022.

Key Highlights:

  • Effective Date: Retroactively applicable from 1 June 2023.
  • Application Requirement: Entities seeking UP status must formally apply to the Federal Tax Authority (FTA).
  • Pass-Through Taxation: No tax is levied at the entity level. Instead, partners or beneficiaries assume the tax obligations directly.
  • Annual Declaration: To retain UP status, a yearly declaration must be submitted, confirming ongoing eligibility.

This framework represents a significant strategic opportunity for family foundations looking to streamline compliance while aligning tax treatment with beneficiary outcomes.

Strategic Considerations for Family Foundations by Structuring Unincorporated Partnerships in the UAE

Before adopting the Unincorporated partnerships in the UAE, family foundations should weigh the following considerations:

1. Eligibility and Structure

Does the foundation’s legal setup and purpose qualify under the criteria for UP status? Structures already operating under a foundation law (like in DIFC or ADGM) may require careful alignment or restructuring.

2. Tax Treatment of Beneficiaries

Will the pass-through model be beneficial to the foundation’s beneficiaries? Consideration must be given to their personal tax circumstances (especially if they are tax-resident in other jurisdictions).

3. Compliance Obligations

Is the foundation equipped to manage the annual declaration and other regulatory responsibilities under the new regime?

4. Long-Term Objectives

Does this structure support the foundation’s strategic goals, including governance, legacy planning, and multi-generational control?

Simplifying Unincorporated Partnerships and Legacy Planning with MS

MS supports family foundations by offering a streamlined, end-to-end approach to structuring under the regime of Unincorporated Partnerships in the UAE. Our team begins by evaluating your current foundation setup and identifying the most tax-efficient options tailored to your goals. We handle the complete Unincorporated Partnership application process, including documentation and submission to the Federal Tax Authority, ensuring your structure meets all legal and regulatory requirements. To maintain compliance, we manage annual declarations and keep your foundation aligned with the latest tax law developments. Additionally, we provide strategic advice on legacy-focused tax planning, helping you structure intergenerational wealth transfers with simplicity, control, and long-term vision.

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Why Ignoring Clawback Due Diligence Risks Your Fund’s Future Returns? 

Clawback Due Diligence

It starts off looking great – early exits, solid IRRs, and carried interest flowing. But what happens when the later deals underperform, and the fund no longer hits its promised return threshold?  

The clawback provision mechanism quietly waits in the background, ready to disrupt GP payouts and LP expectations alike. 

While everyone focuses on deal flow, returns, and exits, clawback due diligence often remain the blind spot in fund due diligence. And in LP-led secondaries, where timing and information asymmetry already add pressure, overlooking clawback exposure can quickly turn a winning deal into a misstep. 

Let’s explore why clawback provisions deserve a front-row seat in your due diligence process and what blind spots to watch before they claw back more than just cash. 

What Is a Clawback Provision? 

Simply put, a clawback is a contractual safeguard that requires the GP to return any excess carried interest previously paid if the fund’s overall returns ultimately fall short of agreed performance hurdles. This means that while a GP may receive carried interest payouts early in the fund’s life based on preliminary profits, those payouts can be “clawed back” if later investments underperform and cause the fund to miss its return targets. 

The clawback mechanism aligns interests by ensuring that GPs do not profit disproportionately relative to LPs once the fund is fully wound down and all gains and losses are tallied. 

Key Conditions Triggering Clawbacks 

Clawback provisions in private equity funds are designed to ensure fairness in carried interest allocation over the life of a fund. They typically hinge on three core conditions that should be closely examined during clawback due diligence: 

  • Preferred Return Shortfall: LPs usually have a preferred return depending on the region and economy that must be met before the GP earns carried interest. If the overall fund performance doesn’t meet this hurdle, excess distributions to the GP may be clawed back. 
  • Excess Carried Interest: With many funds now offering 50–100% carry above the hurdle to attract top talent, traditional 20% carry structures are becoming outdated. However, if the GP receives more than the agreed carry, clawback provisions ensure the excess is returned to protect investor interests. 
  • Catch-Up Period Adjustments: During the catch-up phase, when the GP receives a higher share of profits (often 80%) until the carried interest allocation is fulfilled, clawback provisions can be triggered if the total carried interest paid is out of balance relative to the final fund returns. 

These conditions ensure the carried interest is fairly allocated across the fund lifecycle, preventing GPs from keeping more than their agreed share if early profits are offset by later losses. 

Clawback Due Diligence Blind Spots: The GP Perspective 

  • Neglecting the Catch-Up Clawback: Many GPs focus primarily on preferred return and excess carry clawbacks but overlook the catch-up clawback. This oversight is a common clawback due diligence blind spot that can expose GPs to unexpected clawback liabilities if the fund’s later performance deteriorates. 
  • Delayed Testing of Clawbacks: Clawbacks are usually assessed only at the fund’s termination, sometimes many years after initial payouts. Without interim clawback testing as part of ongoing clawback due diligence, GPs may face a sudden large clawback obligation, complicating their financial planning. 
  • Tax and Cash Flow Implications: Returning carried interest can have complex tax consequences for GPs and impact cash flows, yet these are often not fully considered during fund structuring. 

Clawback Due Diligence Blind Spots: The LP Perspective 

Inadequate Clawback Terms: Not all LP agreements comprehensively cover all clawback scenarios, especially the catch-up clawback. Without detailed terms, LPs risk not recovering excess carried interest. 

Lack of Interim Monitoring: Many LPs rely on end-of-fund clawback calculations and miss opportunities to identify clawback risks early through interim financial reviews. 

Assuming GP Compliance: LPs sometimes trust GPs will voluntarily comply with clawback provisions, but enforcement depends on robust contractual language and LP vigilance and rights to act prudentially at the right time. 

Why Clawback Provisions Are Critical in LP-Led Secondary Transactions? 

Unlike primary investments, where clawback considerations are embedded within the original fund agreement, secondary buyers face the added complexity of assessing potential clawback liabilities that may arise well after the purchase. These obligations can materialize if the underlying fund’s final performance fails to meet the required huedles, potentially forcing the seller or even the buyer, depending on the deal structure, to return previously received carried interest. 

Unfortunately, clawback due diligence in many secondary deals does not adequately capture or analyze these risks. This oversight can lead to mispriced transactions, unexpected financial exposure, and post-sale disputes. As a result, both buyers and sellers must conduct rigorous clawback risk assessments, clearly allocate responsibilities, and negotiate appropriate protections to mitigate future clawback impacts. 

Clawback Due Diligence: Best Practices to Mitigate Risks 

For General Partners: 

  • Incorporate Interim Clawback Testing: Rather than waiting until fund wind-up, conduct periodic assessments to identify potential clawback liabilities early in periodic investor committee and Audit Committee meetings. 
  • Clear Documentation: Ensure fund agreements explicitly define clawback calculation methods, timing, and obligations, including catch-up clawbacks. 
  • Transparent LP Reporting: Maintain open communication with LPs about clawback status to build trust and avoid surprises. 

For Limited Partners: 

  • Negotiate Comprehensive Clawback Clauses: Insist that fund documents cover all clawback scenarios — preferred return, excess carry, and catch-up. 
  • Request Audit and Review Rights: Secure rights to audit fund distributions and carried interest calculations regularly. 
  • Factor Clawback Risks into Valuation: Especially in secondaries, incorporate clawback exposure into price negotiations and risk assessments. 

Where Others Miss the Clawback Traps, MS Delivers Forward-Looking Assurance 

Clawback provisions may not dominate the term sheet conversations, but they can dramatically reshape the economics of a fund. From missed preferred returns to underappreciated catch-up mechanics and LP-led secondary pitfalls, clawback due diligence blind spots are real, and expensive. 

At MS, we help GPs and LPs identify, quantify, and manage these risks before they become real problems. With deep expertise in fund structuring, secondaries, and transaction advisory, we support clients across the lifecycle ensuring every clause, including the clawback, is working for you, not against you. 

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Senior Leadership Challenges Are Escalating, and Experience Alone Won’t Save You. Find Why! 

Senior Leadership Challenges

You’ve done the work. You’ve climbed the ladder. You’ve led teams, driven change, and delivered results. So why does it feel like your resume is being tossed into a void? 

In the new era of leadership experience alone is no longer enough, and where your next opportunity might depend less on what you did and more on how clearly the world can see who you are becoming. 

Let’s unravel this shift, one of the most common senior leadership challenges that’s catching even the most seasoned leaders off guard. 

The Illusion of Experience: Why Years Don’t Equal Readiness? 

“Twenty years of experience” looks impressive on paper. But the question no one asks loudly enough is: 

“Twenty years of what, exactly?” 

In many senior leadership cases, success strategies are repeated like rituals and copied from the past and pasted into new, often incompatible contexts. 

That’s when things fall apart. What worked once might not work now. Familiar tactics may breed overconfidence, not foresight. Without adaptability, experience becomes a trap, a classic example of senior leadership challenges 

What we should be asking is: 

  • “What has this leader learned and unlearned?” 
  • “Can they thrive in complexity?” 
  • “Do they grow through reflection or merely repeat?” 

Reflection: The Overlooked Solution to Senior Leadership Challenges 

John Dewey nailed it over a century ago: 

“We don’t learn from experience. We learn from reflecting on experience.” 

High performers are habitual reflectors. 

They stop. They think. They extract. They evolve. 

Without it, experience is static. With it, experience becomes compound learning. 

Reflection is the leadership superpower that turns busy into better. It transforms activity into insight and insight into direction to tackle the senior leadership challenges. 

The Real Competitive Advantage: Complexity Orientation 

We live in an age where volatility is a feature, not a flaw. In this world, a new leadership currency has emerged: 

Complexity orientation – Too often underestimated; it is the key to tackling today’s most pressing senior leadership challenges. 

It’s the ability to: 

  • Process paradox instead of simplifying it away. 
  • Tackle ambiguity instead of freezing in it. 
  • Make decisions with incomplete information and own them. 

The best leaders are not those who “have the answers,” but those who ask better questions, integrate more perspectives, and adapt without ego. Complexity orientation is leadership in motion. It’s not taught in MBAs or shown in KPIs. But it shows up in moments of crisis, scale, or innovation. 

Emotional Maturity: The Inner Infrastructure of Great Leadership 

Leadership in complexity also demands something deeper: emotional maturity. 

  • Self-awareness 
  • Empathy 
  • Self-regulation 
  • Accountability 
  • Adaptability 

This is not just “soft skill” territory. Leaders with emotional maturity don’t just lead tasks; they lead transformation. They don’t just manage performance; they model purpose. 

Motivation: What Drives You Drives Your Decisions! 

Let’s go even deeper. 

What kind of leader do you become under pressure? 

The answer often lies in your motivational values, those invisible engines behind every decision. 

Leaders driven by values like benevolence, universality, and growth are far more likely to lead in ways that: 

  • Inspire trust. 
  • Prioritize collective well-being. 
  • Deliver sustainable impact. 

Senior Leadership Challenges: Why the Most Experienced Leaders Are Being Overlooked? 

In the age of AI, sometimes visibility beats experience. 

The executive visibility gap is real. 

You may be competent. You may be brilliant. 
But if your insights aren’t public, your story isn’t searchable, and your profile isn’t active, you don’t exist, at least to the algorithms and executive search systems shaping the hiring game today. 

Let’s break it down: 

  • AI-powered ATS systems search for keywords. 
  • Recruiter platforms prioritise engagement. 
  • Sentiment tools score your public voice. 
  • Talent intelligence platforms track your digital footprint. 

If your credibility lives only in meetings and PDFs, then you’re invisible in the modern hiring pipeline and a costly risk in a landscape defined by evolving senior leadership challenges. 

Performance Earns Respect. Visibility Unlocks Opportunity. 

Most executives grew up in the “head down, deliver value” model. 

But the landscape has changed, quietly, but radically. 

Boards now want leaders with: 

  • Public points of view. 
  • Signals of digital fluency. 
  • Presence in industry conversations. 

Strategic personal branding is visibility. It’s not self-promotion but leadership signaling. 

You’re not just applying for a role. You’re demonstrating: 

  • How you think. 
  • Why you lead. 
  • What you stand for. 

So, What Should Today’s Leaders Do to Tackle Senior Leadership Challenges? 

  • Reflect Deeply 
    Build learning cycles into your leadership routine. Document not just wins, but why they worked. 
  • Cultivate Complexity Orientation 
    Seek environments where you can stretch, not just succeed. Welcome ambiguity as your teacher. 
  • Fuel Your Motivation 
    Reconnect with the values that make you resilient and meaningful. Let them drive your leadership brand. 
  • Build Thoughtful Visibility 
    Start showing up strategically. Write, speak, share, and post. Don’t just be experienced but be known for something. 

MS Executive Search: Bridging Experience with Future-Ready Leadership 

At a time when leadership demands are evolving faster than ever, MS Executive Search helps organizations look beyond resumes and job titles to uncover leaders with the mindset, motivation, and maturity to thrive in complexity. We identify individuals who reflect, adapt, and lead with clarity in ambiguity. Because in today’s world, it’s not just about being qualified. It’s about being ready and being found. 

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FTA Guide on Family Foundations: Key Updates on UAE Corporate Tax and Compliance 

FTA Guide on Family Foundations

The UAE Federal Tax Authority (FTA) has released a comprehensive Corporate Tax Guide on the Taxation of Family Foundations, offering clarity on how these entities are treated under the UAE’s Corporate Tax regime. For families managing multi-generational wealth through foundations or trusts, this FTA guide on family foundations is essential reading.  

From fiscal transparency to filing obligations and structuring flexibility, the new guidelines mark a significant step in positioning the UAE as a robust jurisdiction for succession planning and asset protection.  

Annual Confirmation Filing: A New Mandatory Requirement in the Update FTA Guide on Family Foundations  

One of the most significant requirements outlined in the FTA guide on family foundations is the Annual Confirmation Filing. Family Foundations, or juridical persons fully owned and controlled by them and treated as Unincorporated Partnerships, must file a confirmation with the FTA within 9 months of the end of each tax period. In multi-tier structures, either the foundation or each individual entity can submit the annual confirmation.  

Important Deadlines:  

  • For tax periods ending on or before 31 March 2025, the deadline is 31 December 2025. 
  • For those aiming to benefit from the administrative penalty waiver for late registration, it is advisable to submit the annual confirmation by 31 July 2025, particularly for entities with a tax period ending 31 December 2024.  

Other Key Takeaways from the FTA Guide on Family Foundations:  

1. Option to Apply for Fiscal Transparency  

Family Foundations that meet the conditions under Article 17 of the Corporate Tax Law can apply to the FTA to be treated as an Unincorporated Partnership, effectively becoming fiscally transparent. This status exempts the foundation from corporate tax, passing income through to the beneficiaries who then report it in their own tax filings (if applicable).  

2. Unincorporated Trusts and Structuring Flexibility  

By default, unincorporated trusts are treated as Unincorporated Partnerships under the UAE Corporate Tax Law, making them fiscally transparent. These trusts also have the option to elect treatment as a Family Foundation, which can be strategic—particularly when managing or controlling entities that hold assets or investments. 

However, in certain cases, this election may not be necessary. 

According to the FTA guide, if an unincorporated trust is automatically treated as an Unincorporated Partnership and wholly owns and controls a juridical person, and that juridical person meets the conditions under Article 17(1) of the Corporate Tax Law, the “wholly owned and controlled” condition is considered satisfied, even if legal ownership technically resides with the trustee(s). 

This applies as long as the ownership and control chain is uninterrupted and made up entirely of fiscally transparent entities. 

3. Inclusion of Wholly-Owned Entities  

Entities wholly owned and controlled by Family Foundations (directly or indirectly) may also benefit from pass-through treatment if they are not engaged in commercial activities. These entities can also maintain different accounting periods, offering added operational flexibility.  

4. Tax Implications for Beneficiaries  

According to the FTA guide on family foundations, if a non-qualifying public benefit entity is a beneficiary, any taxable income (such as non-exempt dividends) should be distributed to the qualifying entity within six months from the end of the tax period. This underscores the importance of timely distributions.  

5. Applicability to Foreign Foundations  

The guide also explains how foreign foundations holding UAE assets to apply for fiscal transparency, subject to meeting UAE tax law requirements, strengthening the UAE’s global appeal for international families.  

6. Disclosure and Reporting Requirements  

Under the FTA guide on family foundations, only relevant entities, such as non-qualifying public benefit entities, are required to provide beneficiaries with sufficient information to assess their Corporate Tax obligations for each tax period. 

There’s no requirement for Family Foundations to distribute income to family members or share details unless the income is taxable in the hands of the beneficiaries. 

Regarding payments made to beneficiaries for services, these are deductible by the Family Foundation if conducted at arm’s length. However, the tax treatment of such income will be determined separately by each beneficiary and is not addressed within the guide. 

The FTA Guide on Family Foundations: Strengthening Tax Transparency and Wealth Protection 

The FTA guide on family foundations marks an important evolution in the UAE’s tax landscape, providing much-needed clarity for Family Foundations and similar structures. With fiscal transparency options, access to Free Zone tax benefits, and defined compliance expectations, the UAE further cements its reputation as a competitive jurisdiction for private wealth structuring.  

At MS, we are committed to providing you and your family with bespoke wealth planning solutions, including the strategic establishment of DIFC Foundations, enabling you to unlock significant tax benefits and long-term asset protection.  

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How to Spot and Fix Critical Flaws in Succession Planning for Global Families?  

Succession Planning for Global Families

For globally mobile families, preserving wealth is just the beginning. The greater challenge lies in sustaining unity, purpose, and legacy across generations and borders. As family structures grow more complex and assets span multiple jurisdictions, the risk of misalignment, internal disputes, and erosion of shared values increases.  

Let’s explore the common pitfalls that can undermine effective succession planning for global families and how proactive governance, clear communication, and the support of sophisticated family office structures  

The Hidden Fault Lines in Succession Planning for Global Families  

1. Succession Disputes Are Common, Even Among Ultra-Wealthy Families 

In globally mobile families, members are often dispersed across multiple countries, each with its own inheritance laws, tax regimes, and regulatory frameworks. Without a unified governance structure, these conflicting rules can create confusion over rights and responsibilities. The result? Disputes, delays, and costly legal battles that can erode not only the financial value of the estate but also the trust and cohesion within the family. For effective succession planning for global families, cross-border alignment is essential to avoid unintended consequences and preserve both wealth and harmony. 

2. Lack of Clear Governance Leads to Costly Legal Battles 

Global families often have members spread across multiple countries, each with different inheritance laws, tax systems, and regulations. Without a unified governance framework, conflicting rules can cause confusion and disputes over rights and responsibilities. This complexity often results in protracted legal battles, significant costs, and unintended tax consequences, undermining the value intended to be passed on. 

3. Legacy Is More Than Just Money 

Legacy encompasses more than financial assets. It includes a family’s identity, values, name, culture, and long-term vision. When succession planning focuses solely on the transfer of money, the family risks losing the core principles and story that give meaning to their wealth. Without this broader perspective, heirs may lack a sense of stewardship and responsibility, leading to disengagement or misuse of family resources. 

4. Succession Planning Is Treated as a One-Time Event 

Succession planning for global families is approached as a single, static event rather than an ongoing, dynamic process. Families grow, change, and experience life events, while laws and market conditions evolve. If succession plans are not regularly revisited and updated, they become outdated, misaligned with current family realities, and potentially legally ineffective. 

5. Communication Gaps Between Generations Create Misunderstandings 

One of the biggest challenges in succession planning for global families is the lack of open, honest communication between generations. Senior family members may withhold information to protect younger generations, while heirs may feel excluded and undervalued. This communication breakdown fosters assumptions, resentment, and surprises that can damage trust and relationships once wealth and leadership change hands. 

6. Lack of a Family Constitution or Charter Leaves Intentions Unclear 

Without a formal family constitution or charter to capture shared values, governance rules, and conflict resolution mechanisms, succession intentions can be ambiguous. Legal documents such as wills or trusts may dictate asset distribution but rarely reflect the family’s collective vision or provide clear guidance on behavior and decision-making, increasing the risk of disputes. 

7. Standard Structures Don’t Accommodate Cross-Border Heirs 

Global families face significant challenges when heirs reside in different jurisdictions with varied tax laws, inheritance rules, and compliance requirements. Relying on standard wills or generic trust arrangements can expose families to unintended tax liabilities or legal complications, reducing the effectiveness of wealth transfer and potentially triggering conflicts among heirs. 

8. Modern Family Dynamics Add Legal and Emotional Complexity 

Families today are diverse, with blended households, stepchildren, second marriages, and different cultural or religious backgrounds. These factors complicate legal entitlements and expectations. Ignoring such dynamics in succession planning risks exclusion, unfairness, or emotional friction that can disrupt the family’s unity. 

9. Lack of Education and Engagement Among Heirs Weakens Legacy 

Even the most carefully structured succession can falter if heirs lack the knowledge, skills, or engagement to manage their inheritance. Many heirs remain unaware of the family’s wealth structures or business interests, leading to mismanagement or disconnection. Without deliberate education and involvement, the family’s legacy may be lost within a generation. 

10. Equal Doesn’t Always Mean Fair in Inheritance 

While equality is often perceived as fairness, it may not reflect individual circumstances such as personal capabilities, contributions to the family enterprise, residency, or tax considerations. Applying an equal distribution without nuance can cause feelings of injustice and resentment, fracturing family harmony. 

How UAE Family Offices Strengthen Succession Planning for Global Families? 

UAE-based family offices, particularly within frameworks like DIFC and ADGM, offer a robust platform for succession planning for global families. Beyond wealth administration, they help families institutionalize values, identity, and long-term vision through governance tools such as family charters and constitutions. With access to multidisciplinary experts, these offices design bespoke structures like trusts and foundations that address cross-border legal, tax, and residency considerations. They also foster transparency, generational dialogue, and education, critical for reducing disputes and aligning expectations. In an increasingly complex global environment, UAE family offices provide the stability, confidentiality, and strategic foresight needed to ensure smooth transitions and sustained legacy. 

MS: Supporting Succession Planning for Global Families Through UAE Family Offices 

At MS, we specialize in establishing and managing sophisticated family office structures in leading jurisdictions like DIFC. Our team brings deep cross-border expertise to help families design governance frameworks that reflect their unique values, vision, and long-term goals. We assist in drafting family constitutions, implementing tailored trusts and foundations, and advising on residency, tax, and succession planning for globally dispersed heirs. 

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UAE Corporate Tax Penalty Waiver: What Happens in These 5 Common Scenarios? 

Corporate Tax Penalty Waiver

The UAE Federal Tax Authority (FTA) has rolled out a significant Corporate Tax penalty waiver initiative to support businesses that missed the corporate tax registration deadline or have already been penalized for late compliance. This initiative aims to support businesses that may have missed the corporate tax registration deadline or have already been penalized for late compliance. By providing a clear path to penalty relief, the FTA is encouraging businesses to regularize their tax status without the burden of additional fines. 

This is a valuable opportunity for affected entities to avoid further financial strain and align with the UAE’s evolving tax requirements smoothly. 

In this article, we’ll break down the key aspects of this initiative, explain who is eligible, and walk you through the important steps you need to take to benefit from the penalty waiver or refund. 

Why This Corporate Tax Penalty Waiver Initiative Matters? 

  • Enhance voluntary compliance 
  • Support businesses adjusting to the new tax regime 
  • Promote timely filing and accurate reporting practices 

With corporate tax now a core feature of the UAE’s economic framework, such measures are essential to ensure a smooth transition for entities across all sectors. 

Who Can Benefit from This Corporate Tax Penalty Waiver? 

This targeted penalty waiver applies to a range of situations. You may qualify if: 

  • You incurred a penalty for late registration but haven’t paid it yet 
  • You haven’t registered for corporate tax at all 
  • You already paid a penalty but now meet the filing and submission criteria 

This makes the initiative inclusive of both proactive and late-responding entities, provided they now take timely action. 

The Key Requirement: 7-Month Rule 

To qualify for either a waiver (if you haven’t paid the penalty yet) or a refund (if you have) under this corporate tax penalty waiver, you must meet one of the following requirements: 

  • Taxable persons must file the Corporate Tax Return within 7 months from the end of their first tax period 
  • Exempt persons must submit their Annual Declaration within the same timeframe 

Practical Scenarios and Outcomes 

Scenario 1: Penalty Issued but Not Paid 

The taxpayer completed the registration process and was issued a penalty for late registration, which has not yet been paid. The taxpayer then submitted the tax return within seven (7) months from the end of the first tax period. The individual will be exempted from the penalty. 

Scenario 2: Penalty Issued, Not Paid, Return Pending 

The taxpayer completed the registration and was issued a penalty for late registration, which has not yet been paid. The taxpayer has not yet submitted the tax return for the first tax period. In this case, the taxpayer must submit the tax return or the annual declaration within seven (7) months from the end of the first tax period, and the penalty will be waived. 

Scenario 3: Penalty Paid, Return Pending 

The taxpayer completed the registration and was issued a penalty for late registration, which has already been paid. However, the tax return for the first tax period has not yet been submitted. In this case, the taxpayer must submit the tax return or the annual declaration within seven (7) months from the end of the first tax period. The amount paid will be refunded to their tax account. 

Scenario 4: Penalty Paid, Return Submitted 

The taxpayer completed the registration, was issued a penalty for late registration, and has already paid the penalty. The taxpayer also submitted the tax return within seven (7) months from the end of the first tax period. In this case, the amount paid will be refunded to their tax account. 

Scenario 5: Registration Not Yet Completed 

The taxpayer has not submitted a corporate tax registration application. In this case, the taxpayer must complete the registration and submit the tax return or the annual declaration within seven (7) months from the end of the first tax period. The penalty will be waived if it is imposed. 

How to Comply?  

All tax-related actions, including registrations, corporate tax return submissions, and annual declarations, must be completed via the EmaraTax platform. This is a time-sensitive opportunity. Ensure your submissions are completed within 7 months from the end of your first tax period to benefit from the corporate tax penalty waiver or refund. 

Not sure if you qualify for the corporate tax penalty waiver or refund? 

MS can help you get clarity and results. We provide end-to-end support to help you benefit from the Corporate Tax penalty waiver in the UAE: 

  • Determine your eligibility 
  • Handle your registration and filings via EmaraTax 
  • Secure waivers or refunds before the deadline lapses 

With MS, you stay compliant, avoid penalties, and reclaim what’s yours on time and with confidence. 

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Building Trust in Leadership: How Courage and Clarity Create Winning Cultures in Your Organization 

Building Trust in Leadership

In a boardroom bathed in polished wood and polite smiles, a senior manager once proudly declared: 

“There are no disagreements on my team. We’re like family.” 

Someone at the back of the room whispered, “Families argue.” 

The room chuckled politely. 
But that whisper carried the truth. 

In too many workplaces, “earning trust” has been misinterpreted as being agreeable, avoiding conflict, or keeping the mood light. But let’s be honest: if that’s all it takes building trust in leadership, then why do so many “harmonious” teams fail to surface hard truths before it’s too late?  

Let’s find out. 

The Trust Myth We Quietly Inherit 

Many of us internalize the idea that to earn trust, we need to be liked. Be easy to work with. Keep things smooth. Avoid friction. 

But trust, the kind that actually drives results, is born from clarity, consistency, and courage. 

Building trust in leadership happens when: 

  • You say you’ll deliver and do. 
  • You disagree but with respect. 
  • You admit a mistake early, and without defensiveness. 
  • You speak the truth, especially when it’s hard. 

What does Building Trust in Leadership Look Like? 

Let’s ground this in a familiar scene. 

There’s always that one person on the team, the one who doesn’t make noise or seek praise, but when they say, “I’ve got this,” you know they do. They deliver on time and if something slips, they’re honest about it and proactive in correcting course. They don’t disappear when things get messy. 

If anything hits turbulence, they’re the first to speak up. If they see a risk others miss, they call it out but calmly, clearly, and without ego. 

That’s not just a reliable teammate. 
That’s someone people trust and quietly look to for leadership because building trust in leadership is about showing up consistently and owning the outcome. 

Three Habits That Quietly Undermine Building Trust in Leadership 

Let’s talk about what erodes trust often without anyone saying it out loud: 

  • Silence when it matters most 
    When something’s clearly off, but no one wants to be “that person.” (Trust dies in unspoken moments.) 
  • The ‘agree in the meeting, disagree later’ pattern. 
    Smiles in the room, side conversations afterward. (It’s safer but corrosive.) 
  • Saying ‘yes’ when you’re unsure and hoping it works out. 
    You nod along. Then scramble. Then pray. (Intentions don’t build trust. Outcomes do.) 

So, How Do You Actually Earn Trust? 

  • Forget perfection. Focus on credibility in motion. That means: 
  • Be honest. If something’s unclear- ask. If something’s off- say it. 
  • Be consistent. If you commit, follow through. If you can’t, flag it early. 
  • Be direct. No fluff, no hedging. Trust thrives on clarity. 
  • Be self-aware. You don’t need to be right all the time, but you do need to be real. 

In roles where precision, integrity, and performance matter, like M&A, compliance, or strategic advisory, building trust in leadership through these behaviors is the essential foundation for success. 

Leading in 2025: How Building Trust in Leadership Drives Success? 

Leadership in 2025 is less about titles or hierarchy and more about how you operate every day, especially in environments that are fast-paced, high-pressure, or heavily regulated. Whether you’re in a stage of rapid growth, complex challenges, or tight compliance requirements, building trust in leadership through the way you show up and engage with your team defines your effectiveness as a leader. 

The leaders who stand out aren’t the ones who simply avoid conflict or strive to “keep the peace.” Instead, they are the ones who step forward when it truly matters. They are honest and transparent, even when the truth is difficult to share. They take full ownership of their responsibilities, including when things don’t go as planned, and they hold themselves accountable. 

More importantly, these leaders create an environment where others feel safe to speak up, admit mistakes, and challenge ideas without fear of backlash. By fostering this culture of trust and openness, they unlock collaboration, innovation, and resilience. 

MS Executive Search: Your Strategic Partner in Leadership Hiring 

At MS Executive Search, we go beyond traditional recruitment, we partner with you to understand your unique business challenges and leadership needs. Our team combines local market insight with global best practices to source executives who not only bring the right skills but also embody the values essential for building trust in leadership within your organization. From senior executives and compliance professionals to highly specialized roles, we ensure every candidate we present is ready to lead, inspire, and accelerate your organization’s success. 

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The Mechanics of Carried Interest in Private Equity: Risks, Rewards, and Realities of Periodic Carry Crystallization 

Carried Interest in Private Equity

Carried interest in private equity has long been the GP’s reward for strong performance but what happens when that reward is taken too early? 

Periodic carry crystallization reshapes the economics of private funds. It allows GPs to lock in and in some cases, cash out their share of profits at set intervals, well before the fund’s full performance picture is clear. While it’s meant to reward interim success, in practice, it can expose LPs to significant risk especially when those gains are based on unrealized or temporary valuations in unpredictable markets. 

As fundraising grows more competitive and fund structures evolve, crystallization mechanics are getting more complex and less LP-friendly. If not scrutinized closely, they can result in misaligned incentives, overpaid carry, and underwhelming net returns. 

Let’s break down how periodic carry crystallization works, why it matters now more than ever, and what LPs must review to stay protected. 

What Is Periodic Carry Crystallization? 

Carried interest in private equity is typically 20% of profits earned above a preferred return or hurdle (often around 8%). Traditionally, carry is realized at the end of the fund’s term, once all capital has been returned to LPs. In contrast, periodic crystallization allows GPs to realize carry at set intervals such as annually or biannually based on interim fund performance. 

Crystallization may be triggered by: 

  • A rise in the fund’s Net Asset Value (NAV), 
  • Realized gains from asset sales or liquidity events, 
  • Or pre-defined time-based thresholds. 

Once crystallized, this carried interest in private equity may be paid out or accrued, even if the fund later underperforms. That’s where the risk lies for LPs. 

Why Investors Should Pay Close Attention to Carried Interest in Private Equity? 

While periodic carry crystallization can motivate GPs and help increasingly common in India, UAE, Singapore) Where fund talent is mobile, annual incentives and tangible carry stories to new hires become even more important, it may also result in premature compensation, especially if based on unrealized gains or inflated (Net Asset Values) NAVs. For LPs, this structure can create a misalignment of interests if not carefully monitored and properly structured. 

Due Diligence Checklist for Carried Interest in Private Equity: What Investors Should Evaluate? 

When reviewing a fund employing periodic crystallization, investors should look beyond performance metrics and probe the underlying economics. Here are key areas to assess: 

1. Waterfall Structure and Distribution Mechanics 

  • Is the fund using a European waterfall, where carry is distributed only after LPs recover all capital and preferred returns? 
  • Or is it an American waterfall, with carry calculated deal-by-deal? 

Periodic crystallization under an American model can expose LPs to over-distribution risks early in the fund’s life. 

2. Robust Clawback Provisions 

  • Does the Limited Partnership Agreement (LPA) include a clear clawback clause? 
  • Are there mechanisms to recapture overpaid carry if later fund performance doesn’t justify earlier payouts? 

A clawback is essential for protecting LPs, especially in long-duration funds where performance can vary significantly over time and across each portfolio investment. 

3. Transparency in Valuation and NAV Calculation 

  • Are valuations externally audited and based on established methodologies (e.g., IPEV guidelines)? 
  • Is NAV calculation consistent and transparent? 
  • Do LPs have agreed audit rights, and is there LP Advisory Committee (LPAC) oversight over carry releases? 

If carry crystallization is based on NAV, investors must be confident in the reliability and objectivity of those figures, preferably vetted by an independent third-party expert. 

4. Track Record and GP Behavior 

  • Has the GP used similar structures in prior funds? 
  • Were any clawbacks exercised, and how were they managed? 

Understanding a GP’s historical approach to carry can offer insights into their risk appetite and alignment philosophy. 

5. Disclosure and Investor Reporting 

  • Is the crystallization process fully disclosed in offering documents (PPM and LPA)? 
  • Will LPs receive regular, clear reporting on carry calculations, triggers, and any payouts? 
  • Are there at least quarterly meetings scheduled to review fund NAV, Distributions to Paid-In (DPI), and carry projections? 

Transparency fosters trust. Any ambiguity around carry mechanisms should be a red flag. 

Carried Interest in Private Equity: Key Risks to Watch For! 

  • Carry payouts based on unrealized gains without deferral or escrow controls, risking misaligned rewards and future clawbacks. 
  • Lack of effective clawback provisions 
  • Subjective or non-transparent NAV valuations 
  • Misalignment of GP incentives with long-term fund performance 
  • Limited LP oversight on interim crystallization events 

Rewarding Performance Without Undermining Protection 

Periodic carry crystallization can be a valid tool to reward performance and maintain GP motivation, especially in funds with long hold periods or early liquidity events. However, without appropriate guardrails like strong clawbacks, sound valuation practices, and transparent reporting it can distort incentives and shift risk unfairly onto LPs. 

For investors, understanding how and when carried interest in private equity crystallizes is just as important as understanding the returns themselves. Effective due diligence means ensuring the economic structure aligns with the fund’s strategy and timeline and that upside rewards don’t come at the expense of downside protections. 

How MS Can Help? 

At MS, we help investors and fund managers tackle the complexities carried interest in private equity, including the nuanced challenges of periodic carry crystallization. Our team conducts in-depth reviews of fund economics, valuation policies, and incentive structures to ensure alignment between performance rewards and long-term outcomes. Whether you’re an LP assessing a fund commitment or a GP designing your carry terms, we provide practical insights on clawbacks, reporting standards, and risk mitigation.  

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Blogs

Favourable Winds Don’t Blow Twice: Start Exploring Market Opportunities Now! 

Start Exploring Market Opportunities Now

Markets move fast. Tastes change. Competitors innovate. So, how do you ensure your business is discovering fresh opportunities before everyone else does? 

It starts with asking smarter questions and looking in the right places. Here are five dynamic ways for exploring market opportunities beyond the usual brainstorming sessions and industry gossip. 

Maximizing Growth: Strategies for Exploring Market Opportunities 

1. Know Your Crowd, Read the Signs 

To truly understand where opportunity lies, start with the people you’re trying to reach. Who are they, how do they behave, and what triggers their decisions? Exploring market opportunities begins with deep consumer insight. 

  • Demographic and geographic profiling helps you gauge the size of your potential market. But to know the real traction, you need to go deeper. 
  • Look into consumer behaviour, lifestyle shifts, and even badge value. For example, a growing number of consumers are willing to pay more for products aligned with their values. These values may include wellness, sustainability, or convenience. 

Now, layer that understanding with when and how these people buy. Are they scrolling on a phone during their commute? Are they bulk-buying on weekends? Is your product a quick fix, a luxury treat, or a part of a ritual? Map the moments that matter across channels and payment methods, and you’ll be able to show up in the right place, in the right format, at the right time. 

2. Study the Battlefield from All Angles 

In any market, you’re not alone and that’s a good thing. Your direct competitors can show you what’s working and where there’s saturation. But don’t stop there. Zoom out and look at the companies solving the same problems in different ways for exploring market opportunities. 

A sparkling water brand shouldn’t only be tracking other fizzy drinks, it should also be studying flavored teas, mocktails, and even hydration apps. Understanding indirect competition gives you insight into alternative consumer choices and can spark ideas for repositioning or innovation. 

Examine what others are offering, how they’re priced, how they’re marketing, and what’s catching fire. Your next move might not be to replicate, but to fill the gaps they’re ignoring. 

3. Tap Into the Ecosystem 

No product exists in a vacuum. Exploring market opportunities means thinking beyond your core offering and analyzing the items or services your customers use alongside yours. This isn’t just about cross-selling but discovering unmet needs within real-life use cases. 

If you sell fitness gear, you should be following trends in supplements, wellness apps, or even activewear. For every product, there’s an ecosystem of complementary goods that influences how it’s used, perceived, or purchased. 

This broader view helps you spot collaborative opportunities, adjust formats, and even innovate in ways that increase overall usage and customer stickiness. 

4. Go Bigger, Go Bolder 

When the local market feels saturated or growth starts plateauing, it’s time to explore new territories, literally or strategically, while exploring market opportunities. 

Start with diversification. Is there a logical adjacent category you can enter with your existing expertise? Maybe your production process suits another industry. Or your brand equity can carry over into a complementary niche. 

Then consider international expansion. Which countries are ripe for your product, and how do their consumer habits differ? From pricing norms to packaging preferences and regulatory quirks, going global is about adapting smartly. 

In both cases, the key is to balance ambition with data. Estimate demand, map the competitive landscape, and test the waters before diving in. 

5. Read the Room (and the World) 

Sometimes, the biggest opportunities and threats come from forces outside your industry, making it essential when exploring market opportunities to stay alert to broader shifts. Political shifts, regulatory changes, tech breakthroughs, and climate considerations all shape consumer needs and business risks. 

Stay alert to policy changes, like trade restrictions or tax incentives. Watch how new tech like generative AI is reshaping operations, marketing, and even product development. And pay close attention to how global events affect supply chains or alter purchasing power. 

Exploring Market Opportunities: What This Means for Your Growth Strategy? 

Identifying the right market opportunity demands a comprehensive understanding of the forces shaping demand, competition, and consumer behavior. By combining consumer insights, contextual buying patterns, competitive intelligence, complementary market signals, and external macro shifts, businesses can find opportunities that are both viable and sustainable. 

This integrated approach doesn’t just help with product launches or market entries but supports long-term planning, sharper positioning, and more resilient commercial strategies all while exploring market opportunities. Whether you’re eyeing geographic expansion, portfolio diversification, or innovation within existing markets, these analysis types provide a strong foundation to guide your decisions with data, not guesswork. 

How MS Can Help You in Identifying and Exploring Market Opportunities? 

At MS, we help businesses move from assumptions to informed action. Our expertise spans strategic market research, consumer behavior analysis, competitor badge value and benchmarking, and commercial feasibility studies giving you a 360° view of where the real opportunities lie. Whether you’re exploring market opportunities, considering product diversification, or understanding shifting market dynamics, our team offers data-driven insights tailored to your industry and goals. With deep regional knowledge and global perspective, MS empowers you to make strategic decisions with confidence, speed, and precision.