The success of family businesses lies in an algorithm
- The profitability of the company is related to the number of family members within the board of directors
- The rules plan the succession to the best
Milan, 6 June 2018. The formula of success for small and medium-sized family-run businesses exists and provides that family members within the board of directors occupy between 50 and 60% of the seats. This is what emerges from the research conducted by the Mediobanca Studies Office on 280 medium-sized Italian companies on behalf of Cineas (University Consortium for Risk Culture).
The entrepreneurial family is a value but can not become a dogma, especially in cases where membership prevails over competence. So much so that the weight of the family in corporate governance has a strong indicative value: where there is a balance between family and external members, the results appear to be much better. While if this balancing fails, the company’s profitability starts to suffer and can come to precipitate if, for example, the family occupies the totality of the board or, on the contrary, it is completely absent.
“The moment of greatest complexity is the planning of delivery deliveries between the old and the new shareholders and, in cascade between the old and the new managers”, adds Vittorio Villa, Managing Partner of the head hunting company Villa & Partners. “Situations that can nevertheless be managed with serenity, provided they deal with them on two levels: preventively, planning the succession in time, when the relations between the shareholders are calm and the company’s performance is positive. In the transfer phase, including in the agreements a description of the roles of managers, directors and shareholders, which guarantees stable and efficient governance over time “.
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