The Seven Deadly Sins Of Family Business Wealth

When it comes to running a family business over the long term, there are myriad ways that things can go wrong, such as product failures and external economic shocks, more recent than this was the global shock of the pandemic. But often the reasons that a family is to basic financial mistakes.

Local Focus On | Elia Caterers

From humble beginnings to one of Malta’s most renowned catering establishments, Elia Caterers was founded by the late Elia Borg Bonaci and his wife Rita on the 7th of October 1953.

Banishing The Myth That Family Businesses Are Small Size

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.

Local Focus On | MCE Ltd

MCE Limited was founded in 1976. The original scope of the company was to trade in plastic raw material and participate in government tenders.

Local Focus On | Alberta Group

Alberta Group Founded by George Barbaro Sant in 1988, Alberta started off as a micro enterprise dedicated to the supply of fire extinguishers.

Succession In A Family Business Should Never Be A Birthright

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.

Mentoring the Family Business Leaders of Tomorrow

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.

Managing Conflict in Family Businesses

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.

Focus on World Family Business Leaders | The Brenninkmeiyer Family

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.

Deciding On The Type Of Business 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.

Focus on World Family Business Leaders | Peter Kamprad

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.

Rethinking And Revitalising Family Business Governance

“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).

Keeping Family Business Documents In Order

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.

Making Mental Health A Priority

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.

The Key Changes in a Post Covid World

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.

Welcoming the Digital World into your business

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.

Focus on World Family Business Leaders | Koo Kwang Mo

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.

Surviving the Hard Times

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”.

Focus on World Family Business Leaders | Robert Maersk Uggla

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.

Focus on World Family Business Leaders | Lakshmi Mittal

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.

Linking The Family Identity With The Business Brand

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.

Focus on World Family Business Leaders | Theo Albrecht JNR

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.

Working With The Extended Family

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.

The Emotional Lessons of Succession

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.

The Psychological Impact in a Post Covid World

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.

Focus on World Family Business Leaders | The Gallo Family

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.

Managing conflict through engagement

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.

The Fair Transition of Family Businesses

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?

Building Next Gen Communication Skills

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.”

Building A Bridge To The Next Generation

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.

Focus on World Family Business Leaders | August Oetker JR

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.

Family Businesses : Finding The Right Balance

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.

Success In Succession Planning

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.

The Virtual World Of Family Businesses

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.

Focus on World Family Business Leaders | Nick Hayek JR

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.

Let’s Go Green

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.

The Results Of Being Too Generous To Family Employees

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.

Successful Family directors: family, management and independent directors, need to be aligned on the role and importance of family directors at the board.

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.

The Value of Diversity in Governing Family Enterprises

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?

Creating Harmony at Board Level at the Family Business

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?

Focus on World Family Business Leaders | Amancio Ortega

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’.

Successful Directors are Planned and Developed

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.

Focus on World Family Business Leaders | William Lauder

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.

Focus on World Family Business Leaders | Guido Barilla

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.

Women In The Driving Seat

In a special report conducted by EY in collaboration with Kennesaw State University titled ‘Women in Leadership – The Family Business Advantage’, 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.

Post Covid 19 – The Challenge Ahead

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.

ONE NATION – ONE FAMILY – Dr Joseph Gerada

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. As a nation we have however stood up.

2018 In Numbers – Dr. Nadine Lia

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 we’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 For Family Businesses – Dr. Nadine Lia

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.

Running A Business VS Running A Household – Nadine Lia

As all parents can attest the soft and hard skills of running a business and a household are similar and yet so far apart.  Merging both whereby your children and family members move to take on the additional of being your nearest and dearest to becoming your employees,  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.

Preserving Local Family Businesses – Max Ganado

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. Mostly with property but also changing according to the times the way the economy developed.

Starting The Journey To Continuity – Nadine Lia

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 itself—often to the breaking point.

Services and Guidance To Seek From Your Advisors – Nadine Lia

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.

Family Wealth Management – Maria Farrugia

A successful business transfer takes place when “the skills and the desire to be in business” are transferred from one generation to the next (Shrapnel, 2014, p.7).   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.

Proper Planning Is Key – Annalise Micallef

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.

The Role Of The Trusted Advisor – Anthony Pace

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.

How Will This Scheme Be Beneficial For Our Economy – Chris Cardona

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.

3 Key Questions To Discuss With Your Advisors – Nadine Lia

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.