Family business succession

Family business succession is a unique dynamic journey leading to the prosperity or destruction of legacies.

Below are common takeaways surrounding family owned businesses. Feel free to add your journey experiences, enquiries or advice.

The emotional struggle

The business naturally becomes a part of the family's evolution as key family members trigger the beginning, build and grow overcoming challenges and eventually grant prosperity to all family members. Emotional friction occurs when young or newly introduced family members come to stage and impact the future direction: developing and accelerating previous directions, altering directions, or simply letting go in search of new business or personal ventures.

Management and control

The controversial discussion: the young versus the older generation, the professional outsider versus the 'trusted' family member. Behind people selection, family businesses face a range of decision makers: the Ace versus the Rookie, the long term evolution family focus versus shorter term 'employee' lifecycle, the firm discipline versus uncontrolled freedom, etc.

Failure

Consequences of poor succession planning are quite common: poor business performance, depletion of financial resources, destruction of share value, reputation damages, etc.

The majority of family businesses deteriorate with second generations, while disciplined succession plans have extended the successful evolution of businesses and shareholder wealth.

Ace adopts a tailored approach in advising family businesses as there is no 'one size fits all' model to this critical phase. We recommend drawing experience from cases like Red Bull and Mo?t Hennessy Louis Vuitton (LVMH).

Amr is open to discussions with private businesses and private capital investors on investment related topics.

What do you think about today’s newsletter topic? Connect with us to know [email protected] and explore more topics on the journey.