christopher galvin

Why family businesses do well when the founders are at the helm

January 1, 2005

Despite the lack of independent directors on their boards and voting power for minority shareholders, family-run companies are still the better bet for all stakeholders as long as the founder of the firm is involved as chief executive officer or chairman. If the descendent of a founder runs the company, value is lost.

Reprinted with permission from Knowledge@Wharton, the business news and analysis journal of the Wharton School of the University of Pennsylvania. http://knowledge.wharton.upenn.edu

Succession and safe harbours

September 1, 2004

There’s no shortage of findings that suggest family businesses have their work cut out in terms of succession planning.

There's no shortage of findings that suggest family businesses have their work cut out in terms of succession planning. In the US, 40% of family owned businesses are expecting a leadership change in the next four years. Billions of dollars will change hands. In Europe, it's a similar tale. But the plot has a new twist: fewer companies are being passed down the generations. As more owners exit, succession planning has lost its urgency. But private investors can be forgiven for feeling a little wobbly.