Family Business Council – Gulf and PwC publish a guide on managing shareholder exits in family businesses
Dubai, UAE: Family Business Council – Gulf (FBCG), a regional association of the Family Business Network (FBN) have launched a guide in cooperation with PricewaterhouseCoopers (PwC) to help family businesses in the Middle East successfully plan and navigate scenarios of shareholder exit in the family business.
For family-owned businesses in the Middle East, and the GCC in particular, handover from the first to the second generation, and increasingly from the second to the third generation can present unique challenges, which can have tremendous implications on the sustainability and growth of many of the region’s largest companies. The newly published guide provides a roadmap through succession challenges, and is designed to help family businesses navigate potential divergence and differences in family members’ interests and goals, understand the opportunities and challenges of the shareholder exit process, and plan for an optimized outcome that preserves both business continuity and family unity.
Chairman of Family Business Council – Gulf, Mr. Omar K. Alghanim spoke on FBCG’s role in sharing best practices for family-owned businesses operating in the region. He said: “Family members choosing to leave a business can be a sensitive topic for all involved, and many will overlook it until it’s unfortunately too late. Both FBCG and PwC have conducted studies telling us that while in the last two years, family businesses have improved their commitment to documenting their policies in writing, only 31% of businesses have a robust, documented succession plan in place, and only 33% have effective governance policies in place. At FBCG, we are happy to play our part in developing our regional knowledge base on this topic, to help families develop sustainable governance and business models and contribute to the economy in the best way we can.”
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