The Ties That Bind: How Family Businesses Create Value

Family businesses contribute a significant proportion of GDP to economies worldwide, yet they are not always seen as attractive propositions to investors. On the one hand, family-controlled businesses are admired and respected for ‘weathering the economic storms’, for adhering to their core values, and for taking a long-term approach. On the other hand, the very thing that knits them together, the family shareholders, can have different priorities to other shareholders, creating a conflict of interest which can be an obstacle to value creation. How can these companies overcome the hurdles associated with family ownership that keep some investors at bay?