We assist family businesses navigate unique challenges and achieving long-term success through strategic planning, governance, and tailored succession solutions.
- Formalising Business Relationships Among Family Members
- Drafting Family Constitution
- Development Of Family Employment Policy
- Setting Up a Holding Company Board
- Creation Of Family Council
- Development Of Succession Planning in Family Businesses
A family business is a type of enterprise where one or more family members hold significant ownership interests and commitments. Often overlooked, family businesses exist in various forms, ranging from small mom-and-pop stores to large multinational conglomerates. Some of the world's most successful companies, such as Wal-Mart, Samsung, and the Tata Group, are family businesses, owned by the Walton Family from the United States, the Lee Family from South Korea, and the Tata Family from India, respectively.
As family businesses expand, they encounter unique challenges related to performance and governance. It is noteworthy that the majority of family businesses worldwide do not survive beyond the third generation of ownership. However, those that do often outperform non-family businesses.
To ensure the continued success of a family business, it is crucial to have appropriate plans in place to manage the needs of both the growing family and the flourishing business. This requires effective governance, leadership succession planning, and strategic decision-making that balance the interests of both the family and the business. Failure to adequately address these issues may lead to conflicts among family members, potentially harming the business's performance and longevity.
Family businesses are a vital part of the economy and can achieve remarkable success if managed correctly. By understanding and addressing the unique challenges they face, owners can position their enterprises to thrive across generations.
At BDO, we recognise that no two families are alike, and we tailor our solutions to meet the specific requirements of each family. Our experience spans from founder-generation businesses with a single shareholder to multi-generational enterprises with hundreds of shareholders. As independent advisors, we act in the collective best interest of the family business, rather than any individual family member.
