Al Tamimi & Company

Can family companies survive the winds of change? A cry for legislative help

Did you know that most of the successful businesses in the Gulf are in fact family owned? Did you also know that only a small minority actually survive into the second generation? Three factors are mainly to blame.

First, the natural stresses of family dynamics, sibling rivalry and a failure to educate and inspire the new generation to become stewards of the family legacy is a factor. Second, the dilution of ownership naturally occurring as part of the estate devolution rules often results in the business being run by a bickering committee of family heirs and not all businesses survive being governed in this way.

Without a properly pre-framed family rule book, no business can prosper in the face of unresolved family conflicts, deferred decision making and general bad management. This pushes the family into going their separate ways by breaking up or dividing the business thus undermining a once successful economic force. Family businesses are often better off staying together, their market strength and staying power stems from this unity. This divide may ultimately end the business and deprive the coming generations of the family legacy…

If you are registered and logged in to the site, click on the link below to read the rest of the Al Tamimi & Company briefing. If not, please register or sign in with your details below.

Click on the link above to download briefing.

Briefings from Al Tamimi & Company

View more briefings from Al Tamimi & Company

Browse This Firm’s

Overview

Al Sila Tower
Level 26
Al Sowwah Square
Al Maryah Island
Abu Dhabi
PO Box 440
United Arab Emirates

Total lawyers: 230