Seven secrets of great family firms – smartcompany
Great article summarising some of the key success factors for family firms:
Interestingly in the current market secret 4 may be a great strategy to add value:
4. They acquire fewer (and smaller) companies
Many family businesses we studied favoured smaller acquisitions close to the core of their existing business or deals that involved simple geographic expansion. There were significant exceptions to this rule – when the family was convinced that its traditional sector faced structural change or disruption or when managers felt that not participating in industry consolidation might endanger the firm’s long-term survival. But generally, family companies aren’t energetic deal makers. Family businesses prefer organic growth and will often pursue partnerships or joint ventures instead of acquisitions.