How best to prepare for the next up and coming effective Family Business Leader.
Succession planning within a family business can be an incredibly challenging process very few are truly prepared to initiate let alone complete.
Succession planning within a family business can be an incredibly challenging process very few are truly prepared to initiate let alone complete.
Leading a family business may be considered to be no mean feat. What qualities make up for the effective Family Business leader?
It is no hidden secret but of course a real shame that not many family businesses think about passing the business down through the generations.
It is a known fact that in a post covid world a number of industries, both locally as well as the global field, are suffering from skilled labour shortages and therefore are not able to reach their true potential.
In life, you spend more time with your family or working than doing anything else. When you combine these two areas of your life into one and create a family business, the commitment required to managing both is immense.
It seems many business leaders fail to grasp how they can influence people around them. Which is why communication is no longer considered a “soft skill” for business leaders, but a “core skill”.
A baby goes from crawling to walking in a matter of months with almost no coaching. It is a system of trial and error, tipping and falling, progress and regression, experimentation and self-correction.
Recent research into family businesses has pointed out that there seems to be a constant decline in the enterprising spirit in family businesses, as these pass from one generation to the next.
The focus of decision making in family businesses is made more in the context of family relationships rather than just the business.
After years of dedication to building a family business and seeing it through countless ups and downs, an offer to buy the family business may be on the cards.
Creating successful family enterprises is not easy. Sustaining them over the long term is harder still.
As a business owner or leader, it is imperative that one understands the true value of the family business.It is a common occurrence that family businesses with various business interests fail to attach a value to their family business.
One of the most critical juncture and challenge facing any family business is how to treat the next generation.
Family business governance can substantially influence the family businesses’ ability to cope with novelty, uncertainty, and complexity, and thus play a key role in either enabling or impeding innovation processes in family businesses.
Many economic indicators are flashing red. Virtually all economic forecasts predict an economic recession for the EU and US economy next year. It is within this context that many companies are now planning and preparing their annual financial budgets, at a time of high uncertainty.
In a post covid world as well as throughout the pandemic , the move to working from home revealed vulnerability to phishing among family businesses that had not set up proper controls for remote access.
Family offices take many forms. They can be fully staffed, stand-alone operations. They can be entirely virtual, outsourced organizations under the direction of the family. Or they can be something in between. As the saying goes, “If you have seen one family office, you’ve seen one family office.” In other words, a family office is unique to the family it serves.
The Post Covid effects as well as the ongoing Ukranian turmoil seem to linger on. The uncertainties created as a result of the aforementioned and the impact on world economies are still being felt to this day.
It is useful to understand as to why business leaders resist and become lethargic at implementing change although all indicators point at how their business is suffering when not adapting to the ever changing reality they operate in. Why is this?
How important is the human element in a Family Business ? Resources of a human nature are the lifeline of the family business. It is what makes the family business tick. In order to be successful , a family business be it here in Malta as well as the global sphere, the human element needs to be put at the forefront of any serious family business.
The intrinsic nature of the Family Business is never far from the surface. Even when one considers the sale of the Family Business or even the passing thereof , detachment from said family business can never be taken lightly as the emotional roller coast ride is such that one cannot underestimate.
In today’s family business environment, there are more generations working together than ever before. In fact, many workplaces include members of five different generations.
As more and more women make progress in their family businesses by gaining board seats, and increasingly being named successors, it is important to realise in a field that is still male-dominated, women have helped family business leaders to sustain their businesses for future generations.
The ultimate goal of many enterprising family businesses is growing a prospering organization stewarded by a committed group of united family owners.
Around the globe, family businesses are grappling with the effects of inflation, now at its highest level in 40 years and this comes as no surprise due the devastating effects left behind by Covid 19. Over 30% of family business owners feel inflation is their most pressing business problem that they need to navigate.
The recent coronavirus outbreak has challenged many family businesses and resulted in different responses, including organizational transformation and innovation.
Maintaining the Continued Success of the Family Business through proper governance is imperative for the long term.
Succession in a Family Business should never be a birthright. If you fail to plan , you are inevitably planning to fail.
Even the most successful families experience conflict now and again. In family businesses, conflict is unavoidable. Fortunately, research overwhelmingly shows that it is not the presence of conflict that is detrimental to relationships, rather, it is how conflict is managed.
Few things in life are more satisfying than knowing you have helped another person become a better version of themself. It speaks to the importance and richness of both mentoring and being mentored. It’s a teacher-learner relationship, but it is important to note that we must all be learning at all times.
It is a known fact that family businesses , at least most of them, do not plan for succession. It has recently been estimated that as many as 75% of family businesses have not planned in passing on the baton and who the chosen next leader of the family business is.
Alberta Group Founded by George Barbaro Sant in 1988, Alberta started off as a micro enterprise dedicated to the supply of fire extinguishers.
It’s often said that the typical family business goes from rags to riches and back to rags in three generations. Better governance of a family business can help improve business performance and satisfy the expectations of all family members.
MCE Limited was founded in 1976. The original scope of the company was to trade in plastic raw material and participate in government tenders.
<!–more–>MCE Limited was founded in 1976. The original scope of the company was to trade in plastic raw material and participate in government tenders. In 1982 the company moved to new premises in Valletta. The tool trading division was initiated, and this gave the company its future direction in diversification of trade.
Trading in electrical goods commenced in 1984 and in a very short time MCE Ltd established itself as a leading company in this activity. MCE started to stock and distribute electrical installation and lighting materials, including switchgear, cables, control gear and luminaries. The company’s operations continued to grow and by 1990 the company undertook the first stage of the construction of new offices and stores at MCE House at Qormi.
Construction of the new premises was completed by July 1991. Up till 1994 MCE Ltd restricted its activity to trading and minor contracts, mainly in lightning protection systems. From this date MCE started to venture into the contracting sector including large motor controls, lighting of sports arenas and promenades, installing of stand-by generators, central heating systems, and mainly lightning protection of building.
Jointly with international companies, refurbishment of power plant was also executed. During these years MCE was awarded various awards. These include the International Award for Commerce and the Quality in People Award. In 1996 another landmark was reached when after 18 months of hard work, MCE was successfully audited and certified by the British Standard Organization to Quality Assurance BS ISO 9002. Ten years later this was upgraded to BS EN 9001:2000.
Today the company operates its own quality procedures and is no longer externally audited. At this time, the company embarked also on the enhancement of the electrical division, by including water plumbing material. The division was re-named the Electrical and Plumbing Division.
2006 is another landmark year for MCE as the company not only celebrated 30 years but also initiated another new division, Heating and Ventilation. For the third time in its history, the company realized that it had outgrown its storing facilities, and in 2003 initiated the construction of the second phase of MCE House in Qormi. This phase included new parking facilities, additional storage area, larger offices, and facilities for a new shop for the Engineering and Tooling Division.
In 2018 the company had a restructuring of its shareholding where the spouses Ivor and Susanne Puglisevich purchased the stake holding of the other family members to become the sole new stake holders within the Company. New management, ideas, investments, and consolidation of the main company’s activities has had the desired effect to place the company amongst the major league players. Nicola, their daughter soon joined the management team, driving innovation and modernization within the company processes. During the latter months of 2021, the company embarked on another large investment in the refurbishing program of its two retail outlets with a completion date envisaged by mid-2022, by which time the Company would have overhauled its image and outlook
To many, the phrase “family business” denotes a small or midsized company with a local focus and a familiar set of problems, such as squabbles over succession. While plenty of family businesses certainly fit that description, it does not reflect the powerful role that family-controlled enterprises play in the world economy.
The owners of family businesses wield profound decision-making power. There exist sizable family businesses in which not a euro can be spent without their approval. When this power is channeled appropriately, it confers a major competitive advantage.
This week the Family Business Office, for its 34th edition of Focus On , features the very secretive family business synonymous with the world acclaimed brand C&A considered to be the richest family in the Netherlands , more specifically the Brenninkmeiyer family, now in its sixth generation of ownership.
Family businesses are often lumped together as if they were all the same. But four fundamentally different types of family businesses exist, distinguished by who can be an owner and how owners share control.
This week the Family Business Office, for its 33rd edition of Focus On , features the family business synonymous with the world acclaimed brand IKEA and we meet the Kamprads , more specifically the eldest second generation heir Peter Kamprad.
“We have always done things this way” are the famous words that set you on the path to self-destruction. Most enterprising families want to hold onto the past and preserve the family values, which constitute a legacy and honour the vision of the wealth creator(s).
This week the Family Business Office, for its 32nd edition of Focus On , features the current richest woman in the world and third generation heiress of the world renowned family business L’Oreal.
When dealing with family members, in general an element of trust is always prevalent but how far can we take this trust? Business related contracts, in the main, dealing with ownership are sometimes considered by family businesses to be non-essential.
Family businesses vary in size and in a multitude of other platforms. Every family business ‘situation is different one from the other.
As COVID-19 continues to wreak havoc, employers, schools, communities and family businesses are realizing the need to focus on mental health and support people who need help. The topic of mental health regularly trends on social media. This is very good news, as it helps destigmatize treatment in educational and business settings.
This week the Family Business Office, for its 31st edition of Focus On , features American billionaire businessman and second generation heir of the American family business Koch industries.
The Covid pandemic has brought about major changes in the global business environment in which family businesses operate. As a result, the changing roles of institutions, the social role of technology, the contribution and changing nature of ownership, and the social role of the family business are likely to alter family businesses culture and identity.
This week the Family Business Office, for its 29th edition of Focus On goes east yet again bringing you South Korean world giant family business SK Group , headed by Chey Tae Won, second generation heir and chairman.
This week the Family Business Office, for its 30th edition of Focus On, features German billionaire family businessman and second generation Dieter Schwarz, best known to be owner of the world known brand Lidl.
It is no secret that life expectancy has expanded and the world has become more interconnected, family business leaders face an unprecedented challenge like never before.
The next frontier for family-owned businesses that want to evolve, innovate and lead is taking the bold step into the digital realm. If family businesses can learn how to adopt the digitalisation of their operation than the family business will be well positioned for years to come.
This week the Family Business Office, for its 28th edition of Focus On goes east bringing you South Korean world giant family business LG Group, headed by Koo Kwang Mo, fourth generation heir and chairman. Curiously, the introduction of Koo Kwang Mo into the family business is the result of unfortunate circumstances.
Family businesses are in theory better equipped to survive than most. They tend to be able to prioritise long-term goals because the owners usually intend to transfer the business to the next generation. This can be a problem if the heir is not as strong as whoever is on the “throne”.
Everybody has heard of the world acclaimed Maersk shipping lines. This week the Family Business Office, for its 27thedition of ‘Focus On’ brings you Danish giant family business Maersk holding , and its recent appointment of fifth generation heir, Mr Robert Maersk Uggla, chief executive officer at Maersk Moller Holding.
From LEGO to Toyota, family businesses account for as many as two thirds of all companies worldwide. Some date back more than a thousand years, surviving pandemics, financial crisis and waves of industrialization along the way.
This week Family Business Office, for its twenty sixth edition of Focus On brings you French giant family business Auchan holding , until recently headed by Vianney Mulliez.
Perhaps the most quoted statistic in the world of family business is this one: 30% of family businesses make it to the second generation, 10-15% make it to the third and 3-5% make it to the fourth generation.
This week the Family Business Office, for its twenty-fifth edition of ‘Focus On’, introduces second generation heir Lakshmi Mittal. He is the Executive Chairman of ArcelorMittal, the world’s largest steelmaking company, as well as Chairman of stainless-steel manufacturer Aperam.
Surprisingly, some family businesses do not see the value in communicating about their history, their values and their long-term vision as owners of a company. Of course, it is easier not to put the family’s reputation on the line. But that also means missing out on the advantages that come with it.
This week the Family Business Office, for its twenty fourth edition of Focus On World Family Business Leaders looks at Theo Albrecht JNR second generation heir and son of the co-founder of the worldwide chain supermarket giant ALDI. Also in place to this vast chain is third generation heirs from Theo’s late brother Berthold.
It is no hidden secret that promoting family ownership builds trust.
In our everyday work life, we rely heavily on our partners and suppliers. The value of these relationships is irreplaceable as we realise just how many of these firms are family businesses. Family businesses are drawn to family businesses. But it’s much more than that.
This week the Family Business Office, for its twenty third edition of Focus On World Family Business Leaders looks further afield to one of the wealthiest of family business owners in India – renowned tycoon Azim Premji.
In order to evolve and have a successful legacy, Family businesses need to have a healthy succession process. But we must not mistake “healthy” for “painless.” Sometimes family emotions although expected, are most times woefully underestimated. Succession is a mind game with opposing views from one generation to the next.
This week the Family Business Office, for its 22nd edition of Focus On World Family Business Leaders, goes east and introduces third generation family business heir Güler Sabanci.
The impact of the pandemic could have far reaching consequences and not just on family businesses but invariably on businesses of any nature. More so, a family business as this type of business is closely knit by way of close relationships.
This week the Family Business Office, for its twenty first edition of Focus On World Family Business Leaders rather than concentrate on an individual family business leader brings you fourth generation world leader of wine making company Ernest and Julio Gallo.
As expected, family businesses have emotional attachments, whereby, what comes normal to a regularly governed company in terms of decision making does not necessarily mean that it comes in equal measure when it comes to taking the hard decision with family businesses.
This week Family Business Office, for its twentieth edition of Focus On World Family Business Leaders brings youAndre Hoffman, fourth generation heir of the drug company Roche Holding.
As a family grows in size, there is more diversity of generations, personalities, opinions, and values which can naturally create conflict. While every family is different, being proactive and providing opportunities for engagement, whether they work in the business or not, can be a gamechanger for managing conflict.
In a Post Covid World, family businesses, could be best summed up through the following statement: There are unique challenges with a family business, particularly when it comes to making tough decisions in difficult times.
When the going gets tough and families are feuding, fairness is always an issue—and usually, it’s about more than just money. Managing family-owned enterprises and managing family wealth is no easy feat. Family businesses sometimes struggle to define fairness among family members. Why is it so hard to define fairness?
This week the Family Business Office, for its nineteenth edition of Focus On World Family Business Leaders, brings you Dr Wolfram Freudenberg, fifth generation heir of the very diversified multinational family business of Freudenberg Group.
When two or more next-generation members are working in the family enterprise, it is normal for them to be assigned to different functional areas of the business.
This week Family Business Office, for its eighteenth edition of Focus On World Family Business Leaders , brings you Marie Christine Coquette, fifth generation heir and chairperson of Sonepar and Colam Entreprendre , the worldwide family business leader of electrical equipment.
We often hear comments from the Next Generation family business members of an enterprising family that indicate they do not see opportunities to engage: “no one cares what we think, no one listens to me, they do not think I know enough to contribute.” Leading Generation members of those same family businesses may say: “the Next Gens just aren’t stepping up like we hoped.”
This week Family Business Office, for its seventeenth edition of Focus On World Family Business Leaders , brings you Simone Bagel Trah , third generation and Chairwoman of the family business Henkel Group.
It is a known fact that fewer than 30% of successful family businesses make it to the third generation, and fewer than 15% make it through that generation. Growing complexity can complicate family relationships and become a barrier to the long-term sustainability of the business.
This week the Family Business Office, for its sixteenth edition of Focus On World Business Leaders , brings you August Oetker. The Dr Oetker Family Business is now approaching its fifth generation , proof that family businesses can survive the test of time.
Is the right successor to be sourced externally or internally in a family business ? That is the debate many a family business deals with.
This week Family Business Office, for its fifteenth edition of Focus On World Business Leaders , brings you Andrew C Taylor, Executive Chairman at Enterprise Holdings Inc , a world leader in the car rental industry.
Power and control impact family businesses, just like any other enterprise. What makes the inevitable power and control struggles even more complex in a family business are the family dynamics that play a significant role in decision-making and succession planning.
This week Family Business Office, for its fourteenth edition of Focus On World Business Leaders , brings you Emma Marcegaglia, Chief Executive at World Business Leader in production of steel tubes business and second generation business.
Succession planning processes involve an organisation developing a strategy for onboarding and training staff to ensure that when a person carrying an important role leaves the business, there is a suitable replacement.
This week Family Business Office, for its thirteenth edition of Focus On World Business Leaders brings you Ratan Tata, an Indian industrialist, philanthropist, and a former chairman of third generation Tata Sons.
Family meetings have traditionally been low-tech/high-touch environments where family members would come together in conference rooms or inspiring spaces and where devices were encouraged to be checked at the door. Covid-19 has, at least temporarily, changed all that.
This week Family Business Office for its twelfth edition of Focus On World Business Leaders brings you Nick Hayek, CEO of the world acclaimed Swatch Group, now in its second generation following on from inheriting from his father Nicholas G Hayek.
While taking a leadership position in addressing environmental challenges may be seen by some as a “moral imperative,” the economic opportunity lies in developing products and services that are both environmentally sustainable and profitable.
This week the Family Business Office, for its eleventh edition of Focus On World Business Leaders, brings you Charlene de Carvalho Heineken, executive director and fourth generation heir of the world acclaimed Heineken Brewery.
Whoever sits around the boardroom table of a family business wields tremendous influence on the performance and continuity of that family business.
Overlapping roles in family businesses – like father and CEO – are always tricky to manage. But when dads (or moms) allow the family want rather than the business need to guide compensation levels, they create a non-sustainable process that often hamstrings the next generation’s independence and objectivity.
Most family businesses start with an informal board that may be comprised of all family owners and perhaps a few key non-family executives. While this form provides a way to update owners on key matters impacting the company, it is rarely the right group of stakeholders to bring the depth of insight, oversight and objectivity that is most valuable from a more formalized board of directors.
This week the Family Business Office, for its tenth edition of ‘Focus On World Business Leaders’ brings you Giovanni Ferrero, second generation CEO of the well know brand Ferrero.
This week the Family Business Office looks at a different take on governing the family business. Typically, the low hanging fruit in terms of creating the most harmonious decision-making group is simply to seek out like-minded individuals. And why not?
This week the Family Business Office, for its eight edition of Focus On World Business Leaders, brings you Rocco Forte, the brains and chairman of the luxury brand hotels Rocco Forte Collection.
Managing a family business is no easy feat. All family members want to be seen as vitally important to the business but how does one maintain the all important ingredient of harmony in order to ensure the plain sailing operation of a family business?
This week Family Business Office, for its seventh edition of Focus On ‘World Business Leaders’ brings you Amancio Ortega, founding chairman of the Spanish clothing merchandiser Inditex, mainly responsible for the very popular brand ‘Zara’.
One of the most important tools family business owners need, to ensure their business is well run, is not what you might think.
Even families with well-established professional boards that include capable independent directors, good board processes and value-added meetings will run into challenges around the role of the family with the board of directors.
Clearly, the process of succession is not a one time event, whereby the decision of the next leader and/or successor is chosen as a reactive measure. A degree of proactive processes and thinking need to take place for the transition to be a seamless one.
This week the Family Business Office, for its fifth edition of Focus On World Business Leaders, brings you Juan Roig , executive chairman, and the second-generation heir, of Spanish supermarkets chain Mercadona.
The benefits to a family business of having a board of directors are indisputable.
This week Family Business Office for its sixth edition of Focus On World Business Leaders brings you Vitalie Taittinger, president of the eponymously named champagne house, and fourth generation heir.
It’s hardly an exaggeration to consider the successful transition of ownership and leadership from one generation to the next as two family business miracles.
In 1946, Estée and Joseph Lauder founded Estée Lauder Cosmetics. By 1960, after years of hard work and ingenuity, the Lauders were on their way — from a mom-and-pop operation to becoming one of the most influential names in the beauty industry.
This week Family Business Office for its third edition of Focus On World Business Leaders brings you Guido Barilla , chairman of Barilla, and the fourth-generation heir to the pasta fortune that he shares with his three billionaire siblings.
Legacy is not what we are doing for ourselves but what we are doing for our next generation.
This week we take a look at John Elkann , chairman and CEO of Exor, the holding company of Italyâ€™s Agnelli family, which owns stakes in Ferrari and Italian automaker Fiat amongst other business interests.
Family-owned businesses are employers of millions of individuals globally, generators of sizable streams of tax revenue, and financial and social anchors for many communities.
ALEX DUMAS , SIXTH GENERATION CEO OF THE WORLD ACCLAIMED HERMES PARIS.
Navigating complex relationships and understanding unwritten processes are among the many challenges of transitioning a family-owned business to the next generation.
In a special report conducted by EY in collaboration with Kennesaw State University titled â€˜Women in Leadership â€“ The Family Business Advantageâ€™, light is shed on the importance of women in a leadership role in family businesses. Hereunder a summary of findings from said report which makes for an interesting read.
Choosing the right family and corporate governance structure is closely linked to how strongly the family members identify with the business and is one of the keys to long-term success for many of these firms.
The unprecedented, tumultuous events of the past excess of one year have presented family businesses with enormous challenges. Family businesses, by their very nature, are resilient, amid the crisis, have proven their metal.
It is with great sadness that earlier last week , the death was announced of Founder and Honorary President of the European Family Business Office, Mr Mariano Puig, who passed away aged 93.
On Tuesday 2 February 2021 and for our fourth session of a series of webinars organized by the European Family Business Office, it was Mr Jesus Casado, Secretary General, European Family Businessâ€™
On Tuesday 26 January 2021 Dr Rania Labaki took center stage during the third seminar organized by the European Family Business Office as part of the SPRING Erasmus+ Knowledge Alliances project.
Despite the impact left by the pandemic, no business registered with The Family Business Office, has officially declared it had to close down due to the repercussions of COVID-19.
Acknowledging the past and building the future : how shared values can help in succeeding in the post Covid World by Mr Colin Donaldson in collaboration with the European Family Business OfficeÂ as part of the SPRING Erasmus+ Knowledge Alliances project.
Family businesses and business owners need to position themselves to be net contributors to the COVID-19 recovery effort. It is natural that business owners want to be part of the solution and see an opportunity to shape the post-COVID world.
The Family Business Office pledged the Family Business Officeâ€™s support through the incentives it offers, in these trying times that came upon most businesses like a storm out of nowhere.Despite the massive disruptions being caused, we are optimistic Malta will be able to come through
In terms of the Family Business Act, a Family Business is defined as a business which is managed by at least two members within the same family, none of whom hold more than eighty percent of the issued share capital in the company.
The first quarter of 2020 was not an easy one for any of us. The Covid-19 pandemic was unexpected and none of us were prepared for the measures we had to take to safeguard our health and that of our loved ones.Â As a nation we have however stood up.
For most of us, at the moment, it is difficult to speak about anything else other than COVID-19, the effect it is having on our daily lives and the toll it is taking on our businesses, livelihood and the countryâ€™s economy.
Whether itâ€™s the crown, the baton or the family business, passing it on smoothly is the key to assuring that the next generation is not put off tackling succession and take over of the family business.
Pythagoras said that numbers rule the universe and whilst family businesses will be the first to attest the importance of keeping tabs of numbers and figures weâ€™d like to share with you some of our own numbers accumulate during the last year and hope to be able to provide even stronger numbers next year.
New Year resolutions are typically associated with personal development and achievement. Albeit we typically and stoically look into losing weight, cutting down on alcohol or cigarettes, increasing our level of fitness or pinning our goals to buckets lists and targets.
As all parents can attest the soft and hard skills of running a business and a household are similar and yet so far apart.Â Merging both whereby your children and family members move to take on the additional of being your nearest and dearest to becoming your employees, Â eventually your colleagues and in the end, the boss is a transition on many levels for all the family members that requires quite a separation of powers and mentalities.
There comes a time in our life when for many people they hope to plan for a family and dream and work towards having children and raising them.Â We hope to guide and steer our children in the challenges of life and all that society requires to raise healthy, balanced adults.
An estimated 80 percentÂ of the local business world is made up of family businesses – making them a very important part of the island’s economy and success story. Here Jo Caruana takes a look at the unique challenges – and opportunities – posed by this very particular business demographic.
Succession planning is smart business planning. It allows you to proactively develop people, rather than simply name them as replacements. Succession planning is about making sure your business can continue to grow and move forward.
If one looks at the history and economy of Malta, one will find it has been a very family oriented society with family businesses being part of the economy in an important way.Â Mostly with property but also changing according to the times the way the economy developed.
Financial planning is a process, not a product. It is the long-term method of wisely managing your finances so you can achieve your goals and dreams, while at the same time negotiating the financial barriers that inevitably arise in every stage of life of a family business.
Regardless of how small or large the size of a family business, succession planning for family enterprises presents a unique set of challenges. Not only can it be a complicated, emotionally-taxing process, but it also carries the potential to detrimentally affect family relationships, which can strain the business itselfâ€”often to the breaking point.
Phone calls. Emails. Text messages. Conference calls. Meetings. Video conferences. We are in constant communication, and yet so often we fail to effectively communicate. the proximity especially because of family members.
If a family business is intent on surviving with growth and stability and intends to pass the business to future generations it requires the ability to develop a defined strategy coupled with the flexibility to deal with emerging issues that will arise in this ever-changing and dynamic environment.
It is clear that family businesses are a major player in society, a large employer, and an economic force. They remain the bedrock of the Maltese economy and are vital to its success.
A successful business transfer takes place when â€œthe skills and the desire to be in businessâ€ are transferred from one generation to the next (Shrapnel, 2014, p.7).Â Â In light of the increasing number of family members with each new generation, each having different expectations, family wealth can be easily squandered, unless managed properly. This would mean that the hard work of past generations is lost.
Transference of interests in family businesses is an inevitable path such businesses must cross. It is a challenging time for such businesses as family relations converge with business interests with the result that family members must strive to keep a balance on both fronts for the continued success of the family relations and business interests.
Over the past few months, the Malta Employersâ€™ Association hasÂ organised a number of outreach initiatives which have been well received by employers.
An important part of the planning lies in bringing together the wishes of the patriarch and the aspirations of the next generation.
Succession Planning may be one of the most challenging experiences facing any Family Business owner, so it is crucial to get it right. For a Family-owned business, a solid succession plan can drive the growth of the business, manage taxes and set the stage for retirement. Succession Planning is a multidisciplinary process.
Dr Chris Cardona, explains how this scheme will not only benefit local family businesses but also our economy. This act will give guidance to how a family business should regulate itself, benefitting from these new incentives, and restructures itself, in order to prepare for the eventual transfer and succession of the business when the moment comes.
To travel on a journey with others requires a mutual respect and understanding. A preplanning dialogue seeks to generate a relationship that will be the foundation of positive communication, growth, and agreed upon direction. If there is agreement that the relationship is a good fit, a proposal would be developed outlining the process, timeline, and milestones. There is no one size fits all prescription for families or organizations; what is required is the ability to ask the difficult questions and raise the issues that are sensitive, yet must be discussed.