With the beginning of a new year, it is the perfect time for a retrospective of the top ten EY Family Business findings of 2015 based on our analysis from the global family business survey. Continue reading →
Succession is one of the most critical issues encountered by family businesses. Several factors including family dynamics and the emotional connection that family members feel toward their businesses can make addressing succession a complex issue. Continue reading →
The importance of family businesses to the global economy is undeniable. According to the European Commission, they account for more than 60% of all companies in Europe and the Americas and about 50% of employment. But for many, succession planning can be a cause of anxiety, and there are many misconceptions around what is involved.
A risk-taker and an opportunity seeker, 25-year-old Akbar Sheikh, Managing Director of Sheikh Holdings, won the first ever EY NextGen Club Award for his outstanding work in the UK real estate market. In 2011, he decided to set up a family office, while also forming a real estate and private equity division under Sheikh Holdings, the company that represents the Sheikh family’s business activities. With this new division, he delivered a residential scheme that was not only profitable, but that also had a substantial positive impact on the local community. And this makes him a truly inspirational figure for all young NextGen members, and the perfect choice for the NextGen Club Award.
To find out more about EY’s NextGen Club click here.
In this final blog, I want to look at a case where this control takes the form of letting go. This is about new leaders being able to make decisions and take actions the previous generation may not have been able to.
To illustrate this, I’d like to use the example of the Johnson family. John Johnson and his wife Eunice founded Johnson Publishing in 1942 to bring to market Ebony and Jet, among the first magazines targeted at African-Americans.
Last week my last blog introduced the idea of “control from the grave” in family businesses and examined how it can exert such a powerful force. I want to explore this theme further and look at control that’s implicit and has more to do with influence – I call this my “ghost on the wall” theory.
This time, I want to use the example of the Crown family business. Material Service Corporation was started by 23-year-old Henry Crown after World War I with a loan of US$10,000.